Asian Journal of Economic Modelling

Measuring the factors impact on firm performance recovery in coffee chain in Vietnam

Manh Tien Pham — Mon, 15 Apr 2024 00:00:00 -0500

This paper examines the relationship between customer satisfaction antecedents and firm performance recovery in the coffee chain in Vietnam and suggests suitable solutions for those firms to increase firm performance. The booming development period of food and beverage industry, especially coffee chains in Vietnam, also creates fierce competition for these companies, particularly in attracting potential customers and keeping current buyers. In this research, the dependent variables are service recovery performance, the customer satisfaction antecedents, including customer loyalty (service quality, perceived price fairness, and customer satisfaction), technology adoption, and flexibility. To achieve this purpose, a quantitative research design was developed, involving data collection from more than 300 customers who have used services from outstanding coffee chains in Vietnam through a structured questionnaire. The collected data underwent rigorous analysis via the Structural Equation Model, confirming the construct’s validity, reliability, and discriminant validity. The results show that customer loyalty was significantly and positively impacted by customer satisfaction and perceived price fairness. Further, technology adoption and flexibility positively influenced firm performance recovery. However, the research does not find out the relationship between service quality and customer loyalty. The findings highlight the solutions for coffee chains in Vietnam to increase firm performance during the difficult market conditions, natural disasters, and epidemic periods.

Impact of economic growth and financial development on renewable energy use in selected oil-exporting countries

Mounir Belloumi, Ahmed Aljazea — Thu, 18 Apr 2024 00:00:00 -0500

The aim of this study is to explore the influence of economic growth and financial development on renewable energy consumption. For the purpose of analysis, this investigation uses annual data on renewable energy consumption, economic growth, financial development, consumer price index, domestic investment, and foreign direct investment for 13 major oil-exporting countries, including Algeria, Guinea, Gabon, Iran, Libya, Nigeria, Congo, Republic of Venezuela, Saudi Arabia, Mexico, Malaysia, Sudan, and Russia, during the period 1990-2020. The study employs the Pooled Mean Group (PMG) method and Dumitrescu-Hurlin panel causality test to conduct the empirical analysis. The Hausman test determines the PMG estimator as the most suitable among the Mean Group (MG), Dynamic Fixed Effect (DFE), and PMG estimators. This research shows that economic growth and financial development have a positive and significant long-term impact on renewable energy consumption. This suggests that as the economy grows and financial systems develop, there is a potential for an increase in the use of renewable energy. The Dumitrescu-Hurlin causality test and the panel dynamic ordinary least squares (DOLS) method support these findings. From a policy standpoint, promoting economic growth and financial development could lead to greater use of renewable energy and contribute to sustainable development in oil-exporting countries.

Equity pledge of controlling shareholders and investment structure

Qianqi Duan, Normaziah Mohd Nor, Aslam Izah Selamat — Thu, 18 Apr 2024 00:00:00 -0500

This study aims to explore the influence of the controlling shareholders' equity pledge on the company's investment structure and simultaneously investigate the regulatory effect of the ownership nature on the controlling shareholders' equity pledge and investment structure. We take China Shanghai and Shenzhen A-share listed companies as the research object, covering the data from 2013 to 2021, including 14,870 firm-year observations. The results show that the stock pledge behavior of the controlling shareholder tends to encourage the company to make more financial investments than physical investments. In addition, we find that ownership nature helps alleviate the above relationship to a certain extent. It is worth noting that non-manufacturing companies and non-big4 companies have a stronger positive impact on the company's investment structure than manufacturing companies and big4 companies. Finally, we also test the robustness of the research results using the propensity score matching method and the adding control variables method, which is consistent with the results of the baseline regression analysis. The proportion of equity pledged by controlling shareholders should be controlled, especially when the proportion of financial assets in the company's investment structure is too high. This measure can reduce the risk of financialization and maintain the stability of the financial market.

A systematic evaluation of links among corporate structure, knowledge management, and financial effectiveness in Vietnam’s banking sector

Quang Linh Huynh, Nguyen Van Nguyen — Wed, 24 Apr 2024 00:00:00 -0500

There have been a few studies that have examined the moderating importance of corporate structures in the model. Consequently, the key aim of the current research is to investigate the influences of corporate structures on financial effectiveness in banking and knowledge management, where it attempts to evaluate the moderating role of corporate structures on the relationship between knowledge management and financial effectiveness in banking. The current study is based on the population of banks and banking branches in Vietnam. It employs a survey research design and targets 500 banking institutions in Vietnam. However, only 328 appropriate institutions offered sufficiently required information for analyses. The procedures of multiple regressions are applied to statistically investigate causal associations, while the methods of hierarchical regressions were utilized to examine the moderation of corporate structure in the linkages. The research results indicate statistically significant influences of knowledge management and corporate structures on financial effectiveness in banking. More importantly, this study finds that the way corporate structures affect the relationship between knowledge management and how well banks do financially is statistically significant. The empirical findings help administrators make suitable corporate structures that better match the adoption of knowledge management in banking so that they can enjoy enhanced financial effectiveness in banking. This study adds to the literature by evaluating the moderating role of corporate structures in the association between management of knowledge and financial effectiveness in banking. These distinctions improve the field, setting it apart from other research projects.