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The purpose of this paper is to lay the necessary conceptual and empirical groundwork that advances knowledge about paternalistic leadership (PL). PL is reinterpreted as a leadership style consisting of authoritative, moral and benevolent leadership. The mediating role of trust is examined, and a formal, unified construct model of PL is suggested through evidence of construct validity.

An on-site survey was used to collect data from 312 full-time employees in nine organizations in China. Factor analysis, reliability and validity test, and an analysis of bivariate correlations were conducted.

The new construct of PL achieved a positive alignment and coherence among the three dimensions. Subordinates’ trust was found to be critical for paternalistic leaders to be perceived as effective leaders.

Leadership and its effectiveness were examined only at the dyadic level. The levels of the supervisors and their effectiveness differ because some were from middle management, whereas others were from first line managers.

Trust is an important explanatory mechanism for the relationship between PL and employee performance, especially in China. It is a key factor that creates loyalty and builds a good relationship between leaders and subordinates.

Trust signals a strong sense of sharing within the relationship. It induces positive emotional feelings in their leader by the subordinates and, therefore, taps into positive evaluations about the effectiveness of their leader.

This study developed the theoretical underpinnings and provided measurement instruments for PL. It offered a formal, unified construct model of PL.

The purpose of this study is to examine the attitudes toward business ethics of Vietnamese business students based on gender and the experience of having taken a business ethics course.

A quantitative self-administered survey was conducted with a convenience sample of Vietnamese business students at a banking university in Ho Chi Minh City, Vietnam. This study used the 30-item Attitudes Toward Business Ethics Questionnaire (ATBEQ) constructed by Neumann and Reichel (1987) based on the work of Stevens (1979). The Vietnamese version questionnaire was distributed, and 282 surveys were used for analysis. An item-by-item analysis was conducted based on gender and the experience of having taken a business ethics course.

Significant differences were found on seven items based on gender and four items based on the experience of having taken a business ethics course. However, respondents appeared to have similar attitudes on the majority of the items.

Perhaps the greatest limitation of this study is the relatively uneven distribution of the respondents in the sample. The sample is skewed slightly toward women who are a bit older, fourth year or post-graduate and those who have not taken a business ethics course. In addition convenience sampling technique reduced its generalizability. This study is important because it supports the idea of ethics education to improve ethical decision-making of future business leaders and that education has an effect in Vietnam.

As business students are the main subjects of this research, it can be useful for those involved in development of management and business education in Vietnam to have an overview on how gender impacts business students’ ethics perception. For the executives of multinational corporations, this study provides important information and adds support to a decision to do business in Vietnam.

Although there may be a perception of a less than ethical climate in Vietnam based on its Corruption Perception Index scores, it appears that Vietnamese business students in general express an ethical viewpoint. This study emphasizes the importance of ethics education that is culture-specific to build a strong ethical business environment that can help Vietnam prevent bribery and corruption and achieve sustainable growth and prosperity.

This study contributes to the attitudes toward business ethics research and sheds light on the impact of gender and education (business ethics course) on Vietnamese business students’ ethical attitudes. There has been little research on business ethics in Vietnam. Academicians, managers, practitioners, policymakers, government leaders and the like can benefit from the findings of this paper.

This study aims to investigate the relationships between loan growth, loan losses and net income after the 2008 global financial crisis. This study further conducts a comparative analysis by considering the period of COVID-19.

This study uses panel data models such as one-step system GMM, random effects, fixed effects and OLS, with a data set of 131 Chinese commercial banks from 2009 to 2020.

The study finds no significant relationship between loan growth and future loan losses. However, after adjusting loan loss by net interest income (NII-adjusted loan loss), the study reveals that loan growth in the subsequent year decreases if NII-adjusted loan loss increases. The study also demonstrates the positive effect of loan growth on net income as newly expanded loans are funded at similar costs but offered at a lower rate compared with existing loans. During COVID-19, loan growth and net income were higher than in previous years.

The findings suggest that Chinese banks can increase lending to support the economy without sacrificing loan quality, emphasizing the importance of maintaining and enhancing credit policies and practices. Chinese banks should also continue to refine their pricing strategies for loans and deposits. The findings also imply that China's policy responses to the impact of COVID-19 could serve as lessons for future policy decisions.

The authors investigate the impacts of international capital inflows on bank lending in the Association of Southeast Asian Nations-6 (ASEAN-6) countries on the dynamics of both bank loan volumes and credit risk-taking. The authors further explore the heterogenous impacts of different components of the foreign capital. As a robustness check, the authors also examine the role of crisis periods and agency problem on the relationship between international capital inflows and bank lending.

The authors explore the impacts of international capital inflows on bank lending in the ASEAN-6 countries, including Malaysia, Indonesia, Thailand, Philippines, Singapore and Vietnam. The authors employ quarterly data from 2005Q1 to 2021Q2 from 45 commercial banks in the ASEAN-6 countries. The article uses bank-fixed and time-fixed effects in the panel dataset to account for any unobserved heterogeneity.

The authors find that capital inflows to the ASEAN-6 countries are associated with higher bank loan growth and lower loan loss provisions to net interest income ratios. Moreover, the positive relationships between capital inflows to the bank loan growth and credit risk-taking are mainly driven by the dynamics in foreign direct investments (FDIs) and other inflow (OI) components. Contrary to the global financial crisis (GFC), the authors note that the mediating role of capital inflows on bank lending is of particular importance in the COVID-19 pandemic.

This study has some limitations that provide vendors for future research. First, while the authors focus on the impact of capital inflows on bank-level lending activities, future research can also explore the role of foreign capital on bank efficiency and financial stability. Second, although foreign capital fluctuates the most during crisis periods, the movement of capital inflows is also sensitive to other periods of heightened global uncertainty. Thus, rather than focus on the behavior of foreign capital during crisis periods, future research can examine and explore the impacts of capital inflows in different periods of “stop” and “surge” for sudden contraction and boom in capital inflows to the ASEAN-6 countries.

First, the authors provide a comprehensive analysis of international capital inflows' impact on bank lending in the ASEAN region on both bank loan volumes and credit risk-taking. Second, the authors provide evidence of the impact of different forms of foreign capital on the bank lending. Third, the authors investigate the heterogeneous impact of foreign capital on crisis periods and bank sizes, which the authors emphasize the unusual characteristics of the COVID-19 crisis compared with the GFC.

This chapter examines the effects of financial technology news on banks’ return, efficiency and profitability in China and Vietnam from 2011 to 2019. The authors use various asset pricing models to estimate the abnormal returns (AR) of various listed Chinese and Vietnamese banks following their announcements of FinTech adoption. The authors also use data envelopment analysis (DEA) to examine whether financial technology improves banks’ efficiency and profitability. The results of this study show that only six banks showed positive reactions, 15 banks experienced negative reactions, 11 banks exhibited mixed reactions and eight banks indicated no reactions to financial technology news in China. On the other hand, the authors find that financial technology is welcomed by Vietnamese banks whereby most of them experience mixed reactions with the domination of positive reactions. The authors also find a lower efficiency level in early adopters of financial technology and reduced profitability in the first year when they started applying financial technology.

The study examines the impact of income diversification on cost efficiency of Vietnamese commercial banks over the period 2005–2017.

Income diversification indicators are designed based on measures of diversifying loan portfolio. Besides the traditional model, we use the Fractional Regression to estimate the model with dependent variables defined on the unit interval.

Through the two-stage DEA analysis, we find that the income diversification has a positive impact on the cost efficiency of banks. In addition, this impact is stronger for unlisted banks and in the phase of banking system ongoing restructuring.

The use of a variety of income diversification measures and estimation methods for models with bounded dependent variable has provided a reliable empirical evidence of the advantages of implementing a strategy on structural diversity of both interest and non-interest income in the emerging banking markets such as Vietnam.

The purpose of this paper is to test the effects of financial regulatory announcements on risk and return in the Vietnamese equity market.

The event study methodology is used for the return analysis, and asset pricing models are adjusted for the risk analysis. Various robustness tests are used, including the Corrado non-parametric ranking test and the Chesney et al. non-parametric conditional distribution test, as well as GARCH, TARCH, EGARCH and PARCH specifications for the risk models.

The authors find evidence for both negative and positive reactions as well as risk shifting behaviour in the form of a diamond risk structure.

This paper fills a major gap in the literature by investigating the market’s reaction to bank regulatory announcements across financial and non-financial sectors in the Vietnamese equity market.

This chapter examines the impact of economic policy uncertainty (EPU) on bank profitability, using a sample of US banks from 2001 to 2016. We find a robust negative relationship between the aggregate level of policy uncertainty and bank profitability. The channel analysis shows that policy uncertainty can significantly reduce loan growth and increase the nonperforming loan ratio. More importantly, we find critical evidence that bank capital can improve the impact of policy uncertainty on the bank's economic performance and operation. Overall, this chapter has an important policy implication: policymakers can reduce the adverse effect of policy uncertainty on the banking industry through measures to stabilize bank capital adequacy.

The purpose of this study is to examine the influence of the readability of annual reports on firms’ ability to obtain trade credit from suppliers. Particularly, the authors conjecture that annual report readability helps firms obtain more trade credit from suppliers.

The authors use the Gunning Fog Index as the primary measure of annual report readability and the ratio of accounts payable to the book value of total assets as the measure of trade credit.

Results from the study of 4,754 firms during the 2004–2016 period indicate that suppliers extend more trade credit to firms with more readable financial reports. The authors’ results are robust to alternative measures of trade credit and annual report readability. The authors’ results remain robust when we control for firm fixed effects and potential endogeneity problems using the instrumental variable approach. A further test shows that the level of trade credit is higher for firms in business service industries, and that this relation is weakened when firms disclose less readable 10-K filings.

The authors’ findings provide new insight into the role of financial report readability in firms’ ability to obtain trade financing from suppliers. The authors’ results are also in line with the SEC’s encouragement that firms use plain English and easy language in financial reporting.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.