Accounting & Finance
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- ItemCEO duality, board size and firm performance: evidence in Vietnam(Inderscience Publishers, 2023) Le, Hanh Thi My; Ting, Irene Wei Kiong; Kweh, Qian Long; Ngo, Ha Lam TanFrom the perspective of the agency and stewardship theories for explaining the relationship between corporate governance and firm performance, this study examines the impacts of CEO duality and board size on the firm performance. We assess the association between CEO duality, board size and firm performance of top 200 companies listed on the Vietnam Stock Exchange (VSE) over 2014-2015. Our findings show that: 1) CEO duality limits the monitoring function of the board, and a large board size promotes dominance and power of leaders that create more conflicts; 2) the number of executive directors in the top management positively influences firm performance. Findings of our study certainly help policymakers and other stakeholders understand the relationship between CEO duality, board size and firm performance. Overall, this study highlights the CEO duality and the relationship of board size and firm performance in a nation with less protection of minority shareholders.
- ItemThe moderating effects of power distance on corporate social responsibility and multinational enterprises performance(Springer Science and Business Media Deutschland GmbH, 2022) Le, Minh-Hieu; Lu, Wen-Min; Kweh, Qian Long
- ItemIntellectual capital and corporate profitability: zooming into value added intellectual coefficient(Inderscience Publishers, 2022) Ting, Irene Wei Kiong; Kweh, Qian Long; Asif, Jawad; Le, Hanh Thi MyThis study examines how value-added intellectual coefficient (VAICTM) and the modified VAICTM affect corporate profitability. Using a Vietnamese corporate financial dataset of 1,624 firm-year observations for the period of 2009–2018, this study finds that intellectual capital (IC), as estimated by VAICTM and modified VAICTM, has positive impacts on corporate profitability. However, the positive association between IC and profitability is clearer in the scatterplot involving the modified VAICTM. Although VAICTM and modified VAICTM consistently suggest positive impacts of IC on corporate profitability, the components of the two show different outcomes. This study stimulates the need to further examine not only VAICTM but also other IC measurement models to help practitioners better estimate their IC for the best possible corporate profitability. Copyright © 2022 Inderscience Enterprises Ltd.
- ItemCEO compensation and firm performance: Evidence from financially constrained firms(Elsevier Ltd, 2022-10) Kweh, Qian Long; Tebourbi, Imen; Lo, Huai-Chun; Huang, Cheng-TsuWe examine how financial constraints affect the relationship between firm performance and the CEO compensation of U.S. listed corporations during the period 1996–2018. Our results indicate that financial constraints negatively moderate the positive relationships between firm performance and CEO compensation. That is, financially constrained firms that perform well financially will increase their CEO compensation at a smaller rate than their counterparts because financially constrained firms tend to hoard cash to save cost and safeguard for future investment, liquidity and leverage policies. However, the negative impact of financial constraints on the positive pay-performance sensitivity is more pronounced in the bonus sample. That is, financially constrained firms control bonus increments to control costs even when their firm performance improves. Overall, our results, which are robust to a battery of tests, explain why prior studies show minimal pay-performance sensitivity and the need to account for the financial constraints of a company in designing CEO compensation. © 2022 Elsevier B.V.
- ItemWinners and losers from Pfizer and Biontech's vaccine announcement: Evidence from S&P 500 (Sub)sector indices(NLM (Medline), 2022) Kapar, Burcu; Buigut, Steven; Rana, FaisalThis study explores how the US stock market reacted to the news of a successful development of vaccine by Pfizer and Biontech on November 9, 2020. In particular, the study analyses the effect of the vaccine announcement on 11 sector indices and 79 subsector indices. A key contribution of the present study is to provide a deeper subsector level of analysis lacking in existing literature. An event study approach is applied in identifying abnormal returns due to the November 9th vaccine announcement. Several event periods (-1, 0, 1, 2, 3, 0-1, 0-3) are analysed to provide a more complete picture of the effects. Based on analysis, it is established that there are considerable inter and intra sectoral variations in the impact of the vaccine news. The results show that the impact follows a clear pattern. The sectors that were hit hardest by the pandemic such as energy, financials, as well as subsectors like hotels and casinos, benefited the most from positive vaccine news. Subsectors that gained from the pandemic such as airfreight, household appliances and computers and electronics retail were depressed the most by the news. These findings suggest that while the availability of vaccines is expected to help steer economies gradually to normalcy, the re-adjustment is likely to be asymmetric across subsectors. While some subsectors expect to expand as these industries recover from the contraction inflicted by the COVID-19 environment, other subsectors expect adjustment losses as these industries shed off the above average gains driven by the COVID-19 environment.