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1 – 10 of over 5000Firdaus Kurniawan, Hilma Tsani Amanati, Albertus Henri Listyanto Nugroho and Nandya Octanti Pusparini
This study investigates the impact of government and economic policy uncertainty (EPU) on companies' business operations, especially risk-taking tendencies and corporate financial…
Abstract
Purpose
This study investigates the impact of government and economic policy uncertainty (EPU) on companies' business operations, especially risk-taking tendencies and corporate financial reporting quality (FRQ).
Design/methodology/approach
The study employs the generalised least squares regression model. The final sample comprised 27,376 company-year observations from eight countries in the Asia-Pacific region.
Findings
EPU has a negative and significant effect on investment activity and FRQ. Higher EPU leads to a decline in investment and FRQ.
Research limitations/implications
There are several limitations in this study. First, the authors used abnormal investments to measure investments, without considering the degree of irreversibility investment objectives. Second, although control variables are included at the company and country levels, they may only partially control for companies' mitigation effects. Third, the sample is limited to developing countries with unique characteristics in Asia-Pacific; therefore, the findings cannot be generalised.
Practical implications
The findings can help investors, analysts and regulators evaluate EPU's impact on companies' business activities by offering an overview regarding the decline in investment efficiency and FRQ. The results can also be used as input for regulators in formulating policies that encourage companies to regulate investment levels without harming other stakeholders and maintain FRQ during periods of uncertainty.
Originality/value
This research provides intriguing insights into EPU's effects on companies' investment activity and FRQ in developing countries, which are sensitive to changes in macroeconomic conditions.
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Rasidah Mohd-Rashid, Waqas Mehmood, Chai-Aun Ooi, Siti Zakiah Che Man and Chui Zi Ong
Rule of law is essential in reducing corruption in a country. This study aims to investigate the factors contributing to corruption in 41 of the most competitive countries in the…
Abstract
Purpose
Rule of law is essential in reducing corruption in a country. This study aims to investigate the factors contributing to corruption in 41 of the most competitive countries in the Asia-Pacific region by focusing on judicial effectiveness, property rights and government integrity. The moderating role of regulatory quality was also considered in the attempt to explain the association among rule of law and corruption.
Design/methodology/approach
This study used pooled ordinary least squares regression and generalized method of moments-dynamic panel for the robustness test on data of 41 Asia-Pacific countries spanning from 2013 to 2021.
Findings
Property rights and government integrity were found to be negatively significant in explaining corruption. In contrast, the interaction between rule of law and regulatory quality had a significant positive association with corruption. The findings bring to light Asia-Pacific countries’ need for more effective control of corruption.
Practical implications
The authorities should work towards enhancing the countries’ image as corruption-free nations by creating a stable economic and political environment and preserving macroeconomic stability through strengthened rule of law.
Originality/value
Previous research looked at The Association of Southeast Asian Nations and South Asian countries, but little attention was given to Asia-Pacific countries in examining the relationship between rule of law and corruption.
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Khushboo Aggarwal and V. Raveendra Saradhi
The aim of this study is to examine the nature and determinants of stock market integration between India and other Asia–Pacific countries (Malaysia, Hong Kong, Singapore, South…
Abstract
Purpose
The aim of this study is to examine the nature and determinants of stock market integration between India and other Asia–Pacific countries (Malaysia, Hong Kong, Singapore, South Korea, Japan, China, Indonesia, the Philippines, Thailand and Taiwan) over the period 1991–2021.
Design/methodology/approach
Unit root tests, the dynamic conditional correlation-Glosten Jagannathan and Runkle-generalized autoregressive conditional heteroscedasticity (DCC-GJR-GARCH), pooled ordinary least squares (OLS) regression and random effects models are employed for the analysis.
Findings
The empirical results show that the DCC between each pair of sample countries is less than 0.5, indicating weak ties between the pairs of sample countries. Also, the DCC between India and other Asia–Pacific stock markets is positive and low, implying low level of integration. The correlation between India and China stock markets is found to be the highest, implying significant level of integration. The main reason for it would be strong economic linkages and bilateral trade relationship between India and China. Moreover, gross domestic product (GDP), interest rate (IR), consumer price index (CPI)-inflation and money supply (MS) differentials are the major driver of stock market integration between India and other Asia–Pacific countries.
Practical implications
The findings of the study have important implications for investors, portfolio managers and policymakers. It is found that the DCC between India and other Asia–Pacific countries (considered in the study) except China is low, which indicates weak ties between the pairs of sample countries. This implies that the Indian stock market provides good investment opportunities for foreign investors. Also, investors and portfolio managers can attain more diversified benefits and can minimize country risk by investing across Asia–Pacific countries. Further, knowledge about the factors that integrate the Indian stock market with the other Asia–Pacific stock markets will help policymakers frame suitable economic and financial stabilization policies.
Originality/value
This study contributes to the extant literature: first, by examining the linkages of Indian stock market with other Asia–Pacific countries; second, although previous studies confirmed the existence of linkages among the various stock markets, few researchers pay attention to the factors driving the process of stock market integration. This study provides additional evidence by examining the significant macroeconomic factors driving the process of such integration in the Asia–Pacific region considered under the study.
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The regional comprehensive economic partnership (RCEP) is promising as per the claims and can be revolutionary for the Asia–Pacific Region. The member countries will get a boost…
Abstract
Purpose
The regional comprehensive economic partnership (RCEP) is promising as per the claims and can be revolutionary for the Asia–Pacific Region. The member countries will get a boost in the post-pandemic world due to the RCEP. According to Brookings, the RCEP is going to be an agreement reshaping the global economics. This study aims to clarify the aspects related to the RCEP and how it can boost global economics.
Design/methodology/approach
The study employs qualitative descriptive analysis to address the status of RCEP in the region and the consequences of such main transnational partnership. The study is based on economic reports, official documents and data directly related to the subject of the study.
Findings
Findings show that the RCEP will be a significant driver of regional trade despite its faults. The RCEP's tariff benefits and rules of origin, notwithstanding their relatively restricted scope, will encourage enterprises to source products and services from RCEP members, and in combination, RCEP and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are anticipated to replace at least some competing US commodities, services and farm exports. For items that integrate parts and components from inside the area, such as from China, the RCEP is projected to reduce tax and trade facilitation costs, allowing enterprises to avoid US Section 301 tariffs.
Originality/value
By examining how the RCEP operates within the framework of domestic and international trade, this study contributes to a deeper understanding of RCEP and analyses its nature based on data and official reports.
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Even if digital financial services have a positive impact on financial inclusion, it creates a digital as well as gender divide within and across countries, creating regional…
Abstract
Purpose
Even if digital financial services have a positive impact on financial inclusion, it creates a digital as well as gender divide within and across countries, creating regional disparity even within developing nations. Though pandemic has initiated digitalization of various services, there has been scanty research on whether digital transfer of income can improve digital financial inclusion in post-pandemic era, especially in developing countries. The purpose of the current study is to explain the regional disparity within developing countries from three regions East Asia Pacific, South Asia and Sub-Saharan Africa, using latest World Findex data, 2021.
Design/methodology/approach
The author takes an instrumental variable approach to run bivariate probit model to find the factors that motivate the users to make digital payments.
Findings
The study observes that electronic transfer of wages, government transfers and remittances can motivate individuals to make use of digital mode of transactions and mobile. The practice of formal saving and borrowings are the prerequisites. However, this mechanism holds good for East Asia Pacific and not for South Asia and Sub-Saharan Africa, which are poor in information and communication technology infrastructure. Women are lagging behind men, but digital transfer of wages motivate them to make digital transaction.
Practical implications
Digitalization of all government services and provision of affordable mobile network and internet services are necessary for regions like South Asia and Sub-Saharan Africa. In East Asia Pacific region, data protection, data governance and better regulatory framework are required. Higher female labor force participation with digital transfer of wages and empowerment with smartphones are key to reducing the Gender gap.
Originality/value
The current study corrects for the possible endogeneity issue, which the extant literature has not paid attention to, and provides region-specific and gender-specific policy recommendations for an improved digital inclusion.
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Sudharshan Reddy Paramati and Thanh Pham Thien Nguyen
This paper explores the effect of tourism (national and international) indicators on income inequality in a sample of 21 Asia Pacific economies.
Abstract
Purpose
This paper explores the effect of tourism (national and international) indicators on income inequality in a sample of 21 Asia Pacific economies.
Design/methodology/approach
This study uses panel data set from 1995 to 2020 and employs panel autoregressive distributed lag (ARDL) method for the empirical investigation.
Findings
The empirical findings from the panel ARDL models suggest that all of the considered tourism indicators have significant negative impacts on income inequalities. The results remain consistent with alternative indicators and methods.
Social implications
The findings of this study will be critical for the policymakers to take effective measures to reduce the income inequality. Such measures could include promoting tourism in general, focusing on attracting international tourists or domestic tourists, and putting more weight on developing leisure or business tourism, which will boost the overall economic performance and alleviates inequalities in the society.
Originality/value
This is the first study to consider various forms of tourism indicators to see their impact on income inequality in the Asia–Pacific region, and offers important implications for the policy actions.
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Countries worldwide aim to improve their comparative advantages by efficiently using scarce resources for economic growth and development. While many studies have been conducted…
Abstract
Purpose
Countries worldwide aim to improve their comparative advantages by efficiently using scarce resources for economic growth and development. While many studies have been conducted to measure intellectual capital at the firm's level, measuring it at the national level has been under-examined. In addition, while the important role of national intellectual capital in economic growth has been theoretically recognized in literature, this important link has largely been ignored in empirical analyses.
Design/methodology/approach
This study uses the newly developed index of national intellectual capital from Vo and Tran's (2022) study to examine its effects on national economic growth in the long run. The dynamic common correlated effects technique and the pooled mean group estimation are used on the sample of 23 economies in the Asia–Pacific region from 2000 to 2020.
Findings
Findings from this study confirm the positive and significant contribution of the national intellectual capital to economic growth in the region. The authors also find that, as a feedback effect, economic growth will also enhance and improve the accumulation of national intellectual capital.
Practical implications
The findings of this paper provide valuable evidence and implications for policymakers in managing and improving national intellectual capital in the Asia–Pacific region.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study to examine the impact of national intellectual capital on economic growth in the long run in the Asia–Pacific economies.
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Kumaraguru Mahadevan, Arun Elias and Premaratne Samaranayake
The main purpose of this research is to investigate the supply chain performance through collaborative effectiveness, from the organisations of Asia–Pacific region perspective…
Abstract
Purpose
The main purpose of this research is to investigate the supply chain performance through collaborative effectiveness, from the organisations of Asia–Pacific region perspective, compared with that of global organisations based on collaborative supply chain practices.
Design/methodology/approach
The survey research methodology was adopted, involving the collection of survey data from 223 participants across 10 different industries and 6 geographic regions. Data included 103 organisations in the Asia–Pacific region including Australia, India, China, Malaysia, Singapore, Indonesia and Thailand.
Findings
From a collaborative effectiveness perspective, the supply chain performance of Asia–Pacific organisations is different when compared with that of global organisations. It was also found that global organisations are driven by sales performance, while Asia–Pacific organisations are focussing mainly on the cost in terms of the number of employees, and therefore productivity. The metal industry stands out to be the best performing industry from a collaborative effectiveness perspective in the Asia–Pacific region and globally.
Practical implications
The research findings can be used as a guide by industry practitioners to develop benchmarks for collaborative supply chain practices by industry and region of operations. This research has been limited to a few industries such as manufacturing, logistics, service and retail industries.
Originality/value
This research generates new knowledge on the relationship between the collaborative effectiveness and supply chain performance, from the perspectives of both Asia–Pacific and global organisations, based on a collaborative effectiveness framework. The study proposes an innovative approach of assessing supply chain performance through collaborative effectiveness from the perspectives of geographical boundaries and industry types.
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This research has two primary goals: first, to develop a composite index that evaluates the degree to which Asian–Pacific economies are prepared to engage in public–private…
Abstract
Purpose
This research has two primary goals: first, to develop a composite index that evaluates the degree to which Asian–Pacific economies are prepared to engage in public–private partnerships (PPPs), and second, to investigate the factors that have been most influential in the formation of PPP arrangements in the nations' infrastructure over the course of the period 1995–2016.
Design/methodology/approach
The study constructs sectoral and overall index of possible determinants of PPP. Subsequently, it examines each constructed index's role in PPP investment. The author also conducted a panel data analysis to understand the role of each of the potential determinants on PPP projects and investments. This paper analyzes the author’s empirical models using a range of cross-section and panel estimators, including Poisson, zero-inflated Poisson and fixed effect.
Findings
The study’s results based on cross-section analysis suggest that regulatory and institution quality, institutional arrangement and regulatory frameworks, financial market development and macroeconomic stability positively impact investment in PPP. Moreover, the results depict that financial market development has the most substantial impact on PPP investment, followed by macroeconomic stability and prior experience with PPPs. The panel data analysis shows that per-capita income, financial development, inflation, debt, resource import and fuel export are crucial determinants of PPP in Asian–Pacific economies.
Practical implications
Governments of the countries should promptly amend the important policies outlined in this study and adopt a more robust strategy to foster a competitive PPP environment. This will aid in maintaining transparency and gaining the confidence of investors. The study’s findings may assist policymakers in focusing on specific areas in need of improvement. Social welfare and industrialization are ultimately enhanced by the formulation of such policies and by attracting additional infrastructure investment.
Originality/value
This is the first attempt to rank countries on the basis of PPP enablers. Unlike previous studies, this study examines the role of a large number of indicators in determining PPP investment and projects in cross-section as well as panel data framework. The study also investigates the effects of PPP specific provisions and rules. Furthermore, the focus is specifically on Asian–Pacific countries, which are a mix of third-world, emerging, developing and developed countries. Focusing on Asia–Pacific is also crucial because the region is home to most of the world's population, and the region's infrastructure outcomes significantly impact their lives.
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This study investigates the impact of financial development, measured by the ratio of broad money to gross domestic products, on de jure central bank (CB) independence (CBI) in 17…
Abstract
Purpose
This study investigates the impact of financial development, measured by the ratio of broad money to gross domestic products, on de jure central bank (CB) independence (CBI) in 17 countries in the Asia–Pacific region from 1995 to 2014.
Design/methodology/approach
This study uses the feasible generalized least squares (FGLS) approach, which is suitable since the CBI equation suffers from contemporaneous correlation, serial correlation and heteroscedasticity.
Findings
The FGLS results suggest a positive association between CBI and financial market development (FMD). This relationship is confirmed when estimating different indicators of de jure CBI and adopting the panel-corrected standard error estimate. However, the statistical significance of FMD is not supported when the ratio of domestic credit to the private sector to GDP is measured.
Research limitations/implications
It is significant to have a developed financial system to foster a better CBI. Moreover, it is important to measure the influence of financial market players on the operations of a CB.
Originality/value
The financial market in the Asia–Pacific has improved over the years. Hence, the results show the determinants of CBI in the Asia–Pacific, especially the role of FMD.
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