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Lai, Li, Conover, and Wu (2010) propose a four-factor financial distress model to explain stock returns in the U.S. and Japanese markets. We examine this model in the stock markets of Australia, and six Asian markets (Hong Kong, Indonesia, Korea, Malaysia, Singapore, and Thailand). We find broad empirical support for the four-factor financial distress risk asset-pricing model in those markets. The four-factor financial distress asset pricing model improves explanatory power beyond the Fama–French (1993) three-factor asset pricing model in six of the seven Asian-Pacific markets (12 of 14 portfolio groupings), while the Carhart (1997) momentum-based asset pricing model only improves explanatory power beyond the Fama–French model in three of the seven markets (4 of 14 portfolio groupings).

As part of discussing future research in the era of change for Globalization 4.0, this chapter examines the traditional academic CSR literature to determine a gap in current research. An academic literature search revealed limited literature on actual CSR activities, and more specifically, Social Initiatives (SIs). It is important to expand on this area of research as it relates to an evolution of the original CSR definition by Carroll (1979, 1999). The literature review also revealed limited use of Social Identity Theory in CSR studies: a theory which provides an excellent context to give ‘purpose’ and meaning to a more socially oriented form of CSR. It also provides a base to understand human ‘identification’ and ‘identity’ with CSR activities, in a new era of change. Recent research reveals the importance of understanding what employees and global citizens as stakeholders want, need, identify, and engage with. Following a literature review, this chapter introduces a new ‘Social Initiatives Framework,’ designed to incorporate the many terms and alternative themes associated with CSR. The chapter concludes with extracts from an example paper for this area of research, and provides a model to examine changing stakeholder perspectives in global settings. The findings behind the development of the model is discussed, revealing substantial opportunities for future research. The chapter highlights the development of CSR SIs to study the sustainable development goals, while also supporting social enterprises to solve wicked challenges and create shared value (CSV) for both the host community and the company within the setting where the organization resides.

Using a 10,709 firm-year sample covering the 1998–2007 period, we investigate the determinants of capital structure among 1,491 ASEAN-4 (Indonesia, Malaysia, the Philippines, and Thailand) emerging market firms. Building on the work of previous authors, we apply the two-step generalized method of moments (Arellano & Bond, 1991) to develop country-specific dynamic models of target leverage decisions. The right-hand variables incorporate a lagged leverage term that controls for the firms' target adjustment process and the following four explanatory variables: firm size, profitability, tangibility, and nondebt tax shields. The sign and significance of each coefficient provides evidence regarding whether the impact of the associated variable is consistent with the trade-off or pecking order theories. We find that size is negatively associated with leverage among Malaysian, Philippine, and Thai firms but positively associated among Indonesian firms. Profitability is negatively associated with leverage among Indonesian and Malaysian firms but positively associated among Philippine firms. Tangibility is negatively associated with leverage among Malaysian firms but positively associated among Philippine firms. While the impacts of size and profitability are consistent with pecking order theory, the impact of tangibility is not supportive of a specific theory. Of the four variables, size is consistently influential, while nondebt tax shields have no significant impact among firms in any country.

Placing expansion of oil palm plantations in Indonesia in the context of the global land grab, this paper analyzes the contemporary extent and early historical periods of plantation expansion via the theory of accumulation by dispossession (ABD).

After reviewing the empirical debate about the land grab, this paper examines the importance of ABD to understand the land grabs in general and for oil palm plantations in Indonesia in particular. Rather than a new phenomenon of the last four decades of neoliberalism, ABD has a history of several centuries.

Accumulation by dispossession (ABD) is a powerful and appropriate lens by which to understand the land conversion and social displacement occurring in Indonesia. Building on historical understanding of ABD, this paper applies the theory to the Indonesian oil palm case, making the case that the multiple and uncertain sequences of engagement with oil palm expansion are reflective of a broader struggle against dispossession.

ABD is not just a global financial process of corporate-led neoliberalization but also shaped importantly by domestic state and local elites. These elites have shaped ABD differently in colonial, authoritarian, and neoliberal periods.

The financial sector’s growing interest in leveraging artificial intelligence (AI) for forecasting has been noted in recent years. In this chapter, we delve into the application of AI in financial forecasting within Indonesia’s stock market. Our primary focus is to assess how AI’s prediction potential can impact investors and financial regulators in this context. Our review spans existing literature on AI and financial forecasting, recent developments in the Indonesian stock market, and ethical and regulatory concerns that surround AI in finance. Our analysis indicates that AI can enhance forecast accuracy in Indonesia’s stock exchange; however, we must also consider limitations and challenges.

Environmental, social, and governance (ESG) issues have recently received much attention. This research investigates the daily performance of socially responsible investment (SRI). To do that, the authors construct portfolios consisting of the SRI, non-SRI, and matched non-SRI. The portfolios can be compared with the market benchmark based on α adjusted asset pricing models. Due to using high-frequency data, the authors use ARCH/GARCH to deal with time-varying volatility. Moreover, the authors also utilized Fama–MacBeth pooled regression to confront the SRI stocks and the non-SRI counterpart. In sum, the findings of this study confirm the superior performance of the value-weighted (VW) SRI portfolio against the market. On a head-to-head basis, the SRI yields a higher return than the non-SRI. The results are robust in the quarterly analysis. It is essential for investors that put their money in socially responsible (SR) portfolios to either promote sustainable development or chase a return on it.

Small traditional industry has been recognized as an important local economy that support cultural industry and is significant in many parts of the world, particularly in developing countries. The significance of this type industry as a poverty barrier, enables jobs for local rural villagers, and their role in continuing local community based cultural activities have become obvious. However, as the current modern days global pressures affecting many traditional people in developing countries, pathways of small traditional industry toward local sustainable development remain unclear. Further continuous investigations are still required on how this industry provide the platform for greater local, regional and global sustainability. Literatures and debates on the sustainability of the rural developing country concerning small traditional industries may even begin from the establishment of Brundtland sustainability commission in 1987. The conflict between brown and green agenda in Brundtland commission may also point to small-scale traditional industry growth in the developing world. Cultural traditional industries in developing countries could better lead to local sustainability pathway. On the other hand, conflict of the use of natural resources and competition may create different stories. How traditional industry in developing country survive and further innovate for development is a significant knowledge to understand. This chapter uses Jepara traditional furniture industry in Central Java – Indonesia which has been the subject of prolonged study on how small-scale industry implicated to global competition and pressures of raw material resources decline. This chapter further reviews previous research and recent study on Jepara industry upgrade and innovation, and how likely innovation may prosper for the future sustainability of this type of industry.

The aim of this study is to find out the managers’ perception of employment practices and human rights for Indonesian women employee. The research was conducted by using a quantitative and qualitative approach. Data collection was gathered through a questionnaire before performing the Kruskal-Wallis and Mann-Whitney U tests that compare the managers’ perception. The samples for the research were top-, middle-, and low-level managers in Indonesian companies. Three primary managers’ perceptions concerning human rights were found. They are requirement of a particular unit to handle discrimination complaint, guarantee of rights to associate and give opinions, and workforce. There are also three primary managers’ perceptions on employment practices. They are sexual harassment, time flexibility for breastfeeding, and training for counseling facilities and employee risk anticipation. The originality of this study is empirical exploration of multilevel managers’ perception of women employment practices and human rights in Indonesia.

Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key driver of this phenomenon has been the cross-border production, foreign investment, and trade both final and intermediate goods by multinational corporations. Research has sought to understand how foreign direct investment (FDI) affects host economies. This paper reviews the main theories and empirical evidence of two streams of literature: the mechanisms by which multinational activity might create positive effects and externalities to countries and the role of complementary local conditions, also known as “absorptive capacities,” that allow a country to reap the benefits of FDI paying particular attention to the role of factor markets, reallocation effects, and the linkages generated between foreign and domestic firms. The survey focuses mainly on work related to developing countries.

In the absence of well-developed, formal institutional frameworks, informal network-based strategies have been argued to be especially viable in emerging economies. However, some empirical research has challenged these earlier theoretical arguments. In light of new evidence, this chapter develops a contingency perspective differentiating firms' networks as strong ties and weak ties. It suggests that while strong-tie networks are typically found during the early phase of institutional transitions, weak-tie networks are more likely to be developed and leveraged during the late phase of transitions. The upshot is that as the performance benefits of strong ties decline during institutional transitions, emerging weak ties' impact on firm performance is likely to increase.