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1 – 10 of 26Yee Peng Chow and Young Han Tan
The purpose of this paper is to examine the influence of the daily growth in confirmed COVID-19 cases in Malaysia and government interventions on the daily returns of financial…
Abstract
Purpose
The purpose of this paper is to examine the influence of the daily growth in confirmed COVID-19 cases in Malaysia and government interventions on the daily returns of financial times stock exchange Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) and eight selected Bursa Malaysia sectorial indices for the period January 29, 2020 to March 31, 2021.
Design/methodology/approach
This paper adopts the multivariate generalized autoregressive conditional heteroscedasticity model to determine the effects for the entire study period and four sub-periods, i.e. pre-government intervention, movement control order (MCO), conditional MCO (CMCO) and recovery MCO phases.
Findings
This paper finds no evidence of the effect of the daily growth in confirmed COVID-19 cases on the returns of FBMKLCI and eight Bursa Malaysia sectorial indices for the full study period. However, the former has exerted different effects over the four sub-periods. Sectors that are positively affected for the MCO period are financial services and real estate investment trust. Yet, these sectors are negatively affected for the CMCO period along with the industrial products and services and technology sectors. Sectors that consistently demonstrate statistically insignificant results are construction, energy, plantation and utilities.
Originality/value
This study makes an initial attempt to investigate the influence of the COVID-19 pandemic on the returns of Bursa Malaysia sectorial indices over different phases of government interventions in Malaysia.
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The purpose of this study is to examine how business founders influence the performance of family firms in developing countries in Asia.
Abstract
Purpose
The purpose of this study is to examine how business founders influence the performance of family firms in developing countries in Asia.
Design/methodology/approach
The pooled ordinary least squares regression is used on a sample of 134 public listed family firms from four developing countries in Asia during the period 2004–2014. This study also conducts sub-period analyses where the study period is divided into three sub-periods, i.e. before, during and after the global financial crisis (GFC).
Findings
This study finds that founder-led family firms outperform family firms led by nonfounders for the full study period. The results for the sub-period analyses also show that founder-led family firms outperform nonfounder-led family firms for the pre-crisis and during crisis periods. Finally, this study finds no evidence supporting the superior performance of founder-led family firms post-GFC.
Originality/value
Because family firm is one of the most fundamental forms of business organization in the world, policymakers have great concerns about how business founders influence the performance of these firms. Nonetheless, the existing research on family firms is chiefly concentrated on developed countries but there is a paucity of studies being conducted in the context of developing countries. Moreover, previous research has only considered the performance of these firms during normal or turbulent times but no prior studies have compared the firm performance during normal, turbulent and recovery periods. It is the aim of this paper to address these research gaps by using a new and more recent set of data.
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The purpose of this paper is to examine whether and how chair-chief executive officer (CEO) generational difference is related to debt financing.
Abstract
Purpose
The purpose of this paper is to examine whether and how chair-chief executive officer (CEO) generational difference is related to debt financing.
Design/methodology/approach
This paper adopts the pooled ordinary least squares and system generalized method of moments estimation procedures to analyze listed firms in Malaysia from 2013 to 2017.
Findings
The results reveal that chair-CEO generational difference is negatively associated with leverage. The evidence suggests that substantial age gaps between the chair and CEO precipitate cognitive conflicts, which lead to better monitoring and control. This results in better governance and less information asymmetry, causing firms to depend less on debt as a board monitoring mechanism. The findings provide support to the theory posited in this paper on the substitutability of chair-CEO generational difference and debt financing.
Originality/value
This is the first attempt to investigate the substitutability of chair-CEO generational difference and debt financing.
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The purpose of this paper is to investigate the relationship between chair–chief executive officer (CEO) demographic dissimilarities and firm internationalization.
Abstract
Purpose
The purpose of this paper is to investigate the relationship between chair–chief executive officer (CEO) demographic dissimilarities and firm internationalization.
Design/methodology/approach
The pooled ordinary least squares regression is used on a sample of listed firms in Malaysia from 2013 to 2017. This study considers three demographic dissimilarities between the chair and CEO, i.e. differences in age, educational background and nationality.
Findings
The results reveal that demographic dissimilarities between the chair and CEO, notably differences in nationality, may result in conflicting cognitive styles, which in turn may impede the firms’ ability to expand internationally, as compared to differences in age and educational background. The findings demonstrate the deleterious effects of demographic dissimilarity between these two individuals in the highest echelons on the firms’ internationalization strategy due to poor communication and lack of ability to cooperate when dissatisfaction and conflicts intensify between these corporate elites.
Originality/value
To the best of the author’s knowledge, this paper makes the first attempt to examine the influence of chair–CEO demographic dissimilarities on firm internationalization. Previous studies examining firms’ internationalization strategy, for the most part, restricted their scope to either the board members or top management team characteristics, but had largely overlooked the nexus between nonexecutive and executive directors through the chair and CEO. A focus on the demographic dissimilarities between the co-leaders of the firm is essential to improve the understanding of the collaboration and rivalry between them, which may affect board effectiveness and firm internationalization.
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Ming Torng Ang and Yee Peng Chow
The purpose of this study is to examine the influence of virtual currency (VC) development on financial stocks’ value in selected Asian equity markets and the moderating role of…
Abstract
Purpose
The purpose of this study is to examine the influence of virtual currency (VC) development on financial stocks’ value in selected Asian equity markets and the moderating role of investor attention on this relationship.
Design/methodology/approach
The pooled ordinary least squares regression is used on a sample of 138 listed financial firms from four emerging Asian countries for the period 2016–2020.
Findings
This study finds that changes in VC values have greater spillover effects on the values of financial stocks in countries which do not recognize the legitimacy of VCs than in countries which do, due to the lack of breadth and depth of the former markets. Moreover, this paper also reports evidence of the greater moderating role of investor attention on this relationship in countries which do not recognize the legitimacy of VCs than in countries which do.
Originality/value
Although numerous studies have been conducted on the influence of VCs on stock performance, majority of these studies did not distinguish whether the sample countries being studied actually recognize the legitimacy of VC transactions or not. Moreover, extant literature has not considered the moderating role of investor attention on this relationship. It is the aim of this study to address these research voids by using a refined three-factor theory model of capital asset pricing model incorporating VCs to better represent stock performance in the digital economy era.
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Yee Peng Chow, Junaina Muhammad, A.N. Bany-Ariffin and Fan Fah Cheng
The purpose of this paper is to examine how corporate governance moderates the relationship between macroeconomic uncertainty and corporate capital structure.
Abstract
Purpose
The purpose of this paper is to examine how corporate governance moderates the relationship between macroeconomic uncertainty and corporate capital structure.
Design/methodology/approach
This paper employs the two-step system generalized method of moments regression, considering a sample of 907 listed non-financial firms from seven Asia Pacific countries during the period 2004-2014.
Findings
This study finds that macroeconomic uncertainty has a significant negative impact on the capital structure decisions of firms. The results also reveal that the overall effect of macroeconomic uncertainty on capital structure among firms with better governance quality is significantly negative. The evidence suggests that corporate governance acts as an effective mechanism to curb the usage of leverage during times of high volatility. Further analysis shows that board independence, the separation between the roles of CEO and chairman of the board and blockholders’ ownership are effective governance mechanisms, whereas similar observations do not hold for board size and institutional ownership.
Research limitations/implications
The findings of this study may be useful to policy makers to formulate appropriate policies to mitigate the adverse effects caused by macroeconomic uncertainty. This is important because macroeconomic uncertainty may have potential destabilizing effects on a country’s or region’s development by jeopardizing the firms’ ability to formulate sound investment, production and financing decisions. Additionally, the results suggest that good governance quality can act as a check and balance to ensure that firms use less leverage when they are facing volatility in the macroeconomic environment. These findings could help to reinforce the importance of good governance among policy makers of a country as well as managers of firms.
Originality/value
The authors make the first attempt to examine the moderating effect of corporate governance on the relationship between macroeconomic uncertainty and corporate capital structure.
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This study aims at providing exploratory insights into the initiative and capabilities of Chinese SMEs to develop and utilize diverse networks to support internationalization…
Abstract
This study aims at providing exploratory insights into the initiative and capabilities of Chinese SMEs to develop and utilize diverse networks to support internationalization. Such network development and utilization efforts are fundamental to the analysis and explanation of Chinese firms’ internationalization patterns and outcomes. Extending from the existing network studies in the Chinese context that generally put emphasis on strong‐tie and ethnic‐oriented networks, this paper investigates and explains explicitly the use and effects of both strong‐ and weak‐tie networks in the international development of Chinese SMEs. Indepth case studies on four rapidly internationalized Chinese SMEs are conducted. The case findings demonstrate that weak‐tie networks are essential to the firms’ business development in foreign markets; and were proactively developed and utilized in the course of the firms’ development. The cases also provide alternative perspectives to the beliefs and values underpinning strong‐tie networks presumed in existing literature. The findings draw attention to the changing business values and approaches of the Chinese firms aiming at developing internationally. Managerial implications concerning the significant influence of effective networking on internationalization are pinpointed.
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This paper attempts to provide an understanding of gift‐giving for a more systematic assessment of relationship building to succeed in an Asian realm. This study proposes to…
Abstract
This paper attempts to provide an understanding of gift‐giving for a more systematic assessment of relationship building to succeed in an Asian realm. This study proposes to examine the underlying linkage between the intensity of gift‐giving and constructing relationships. The goal is to provide both researchers and businesses an insight into how to successfully manage profitable relationships in a culture‐rich environment that is growing ever more demanding and complicated. Gift‐giving is seen as an act of reciprocity, and often misconstrued as bribery by Westerners, yet it appears to be an important constituent of the Asian culture and can be seen as a form of relationship investment, that if cultivated well, can uplift interactions between businesses.
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