Asian Journal of Business and Accounting <p>The Asian Journal of Business and Accounting (AJBA) is an international refereed journal, published twice a year by the <a title="fba" href="" target="_blank" rel="noopener">Faculty of Business and Economics , (formerly known as Faculty of Business and Accounting)</a> <a title="um" href="" target="_blank" rel="noopener">University of Malaya</a>, Malaysia. Its aim is to publish scholarly business research on issues which are relevant to Malaysia and the Asian region, especially those providing practical implications to promote better business decision making and public policy formulation.</p> <p> The journal covers a broad spectrum of business and accounting areas and its sub-areas. A suggestive (not necessarily comprehensive) list of areas include: auditing, banking, business strategy, corporate governance, entrepreneurship, finance and investments, financial and management accounting, financial economics, human resource management, information management, innovation and technology management, international business management, marketing management, operations and production management, organisational behaviour, public sector accounting, risk and insurance, strategic management, taxation, and tourism and hospitality.</p> <p><strong>E-ISSN: 2180-3137</strong><br /><strong>Print ISSN: 1985-4064</strong><br /><strong>Publisher: University of Malaya</strong><br /><strong>Publication type: Print &amp; Electronic</strong><br /><strong>Publication frequency: 2 time(s) per year (June and December)</strong><br /><strong>Journal Website: <a href="" target="_blank" rel="noopener"></a></strong></p> <p> <img src="" alt="" width="111" height="102" /> <img src="" alt="" width="174" height="90" /> <img src="" alt="" width="173" height="50" /><img src="" alt="" width="188" height="65" /> <img src="" alt="" width="152" height="61" /></p> Faculty of Business and Economics, University of Malaya en-US Asian Journal of Business and Accounting 1985-4064 Sustainable Palm Oil: What Drives it and Why Aren’t We There Yet? <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study explores the institutional pressure and motivation that drives Malaysian palm oil companies to embark on sustainability practices, and uncovers the impediments of substantive change in producing truly sustainable palm oil.<br /><strong>Design/Methodology/Approach:</strong> A case study methodology was employed, gathering primary and secondary data through semistructured interviews with the company’s personnel and external stakeholders, through informal conversations and group discussions with company workers, document analyses, and observations. The neo-institutional and legitimacy theory were used as the primary lens to explain the study findings.<br /><strong>Research findings:</strong> The results indicate that both external pressures and internal issues have forced the company to engage in sustainability practices – primarily through certification. Unlike the independent stakeholder pressure found in previous studies, a chain reaction of pressures was found from NGOs and competitors to multinational buyers, whom in turn put pressure on the case company, thus jeopardising their financial bottom lines. Regulatory<br />pressures, conforming to the industry norms, wooing host country’s government, investors, and financiers add to the external motivation. Reputational problems and labour shortages, business case for sustainability, and the philanthropic nature of family-owned firms are the internal elements behind the endeavour. The barrier to change<br />towards sustainability was mainly caused by cost concern, technical difficulties, mindset of workers, unsupportive business environment and impracticalities of safety equipment design.<br /><strong>Originality/value:</strong> The findings shed light on the inner motive and barriers of change towards producing sustainable palm oil, the understanding of which is vital in driving further substantive changes in the palm oil industry towards sustainable development.<br /><strong>Research limitation/Implication:</strong> The study was restricted to a single case company in the Malaysian palm oil industry and hence, generalisation of the study findings onto another context should be<br />done in a cautious manner.<br /><strong>Keywords:</strong> Organisational change, Neo-institutional theory, Legitimacy theory, Palm oil, Sustainability reporting and practice<br /><strong>JEL Classification:</strong> Q56</p> Saidatul Nurul Hidayah Nor Ahmad Azlan Amran A.K. Siti-Nabiha Rusniza Abdul Rahman Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.1 Corporate Philanthropy and Firm Performance Relationship – Socio- Political and Government Control Effects <p><strong>Manuscript type:</strong> Research Paper<br /><strong>Research aims:</strong> This study aims to examine the impacts of socialpolitical context and government control on the relationship between corporate philanthropy and firm performance using the listed firms’<br />data on the Hong Kong Stock Exchange (HKEX).<br /><strong>Design/Methodology/Approach:</strong> This study uses multiple regression analysis to study the relationship between corporate philanthropy and firm performance using 2012-2018 Hong Kong listed firm data. Empirical results show a positive association between the current and lagged corporate philanthropy and financial performance. Subgroup analysis shows that the relationship is contingent on the socio-political and government control factors. Our subgroup analysis reveals that Hong Kong firms benefit more from corporate philanthropy than Mainland China firms, and non-government control mainland private firms have a stronger positive relationship than the state-owned enterprises. Our results support social impact theory and political connection theory.<br /><strong>Theoretical contribution/Originality:</strong> Our study bridges the gap of prior studies on the philanthropy-corporate finance relationship by isolating the separate effect of socio-political context impact and government ownership. We believe we are the first study in this respect. Our findings validate the results of prior studies in general and suggest the empirical results based on transitional economy data is, to some extent, generalisable.<br /><strong>Practitioner/Policy implication:</strong> Contemporary data provides empirical evidences that corporate philanthropy could elicit positive responses from stakeholders to bolster corporate financial performance, except firms under government control. The positive impact of donation was immediate with a lasting effect as suggested in the literature and the result would be relevant for regulators in formulating policies regarding corporate social performance.<br /><strong>Research limitation/Implication:</strong> Similar to previous studies, corporate philanthropy is proxy by the monetary amount of donation in this study. However, the context of corporate philanthropy very often goes beyond monetary donations and the findings may not apply to firms making substantial non-monetary donations.<br /><strong>Keywords:</strong> Corporate Philanthropy, Corporate Social Responsibility, Firm Performance, Socio-political Context, State-owned Enterprises.<br /><strong>JEL Classification:</strong> M14</p> Sze-Sing Lam Pauline Hie-Yiin Hung Samuel Ping-Man Choi Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.2 Impact of CEO Characteristics on Capital Structure: Evidence from a Frontier Market <p><strong>ABSTRACT</strong></p> <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study examines the impact of CEO characteristics on the capital structure of non-financial listed companies in Sri Lanka<br /><strong>Design/methodology/approach:</strong> This study employs multiple regression selecting a sample based on a data set from a panel of 123 mainboard listed companies which covers all the non-financial sectors of the Colombo Stock Exchange for an eight-year period from 2012 to 2019.<br /><strong>Research findings:</strong> This study finds a significant positive relationship between male CEOs and capital structure. It suggests that male CEOs tend to employ more debt within the capital structure due to their aggressive nature and overconfidence. Similarly, this study finds a significant positive relationship between CEO’s age and capital structure. The evidence provides that as they age, CEOs tend to have more experience, better risk management capabilities, and enhanced business sense to take proper financing decisions at the right time with more debt financing.<br /><strong>Theoretical contribution/originality:</strong> Since there is no research conducted on CEO characteristics and capital structure in the Sri Lankan context, this study has made a significant contribution to the local literature and mitigates the gap in the frontier market literature.<br /><strong>Practitioner/policy implications:</strong> The findings are helpful for the organisations when appointing key decision-makers to run the organisation and make strategic choices based on formulating corporate policies among debt and equity.<br /><strong>Research limitation:</strong> The study has been limited to six CEO characteristics; there are other factors such as risk appetite levels that may have implications and the study has not focused on any impact towards real financing decisions.<br /><strong>Keywords:</strong> CEO Characteristics, Capital Structure, Frontier Market, Non-Finance Companies, Sri Lanka, Upper Echelon Theory.<br /><strong>JEL Classification:</strong> G32</p> Romal De Silva Yatiwelle Koralalage Weerakoon Banda Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.3 Determinants of Basel III Risk Disclosures: The Case of Gulf Cooperation Council Public Banks <p><strong>Manuscript Type:</strong> Research paper<br /><strong>Research aims:</strong> The purpose of this paper is to investigate and examine the determinants of risk disclosure practices under Basel 3, Pillar 3 (revised 2016 version) requirements of the top 50 listed banks in the Gulf Countries region (GCC). The study covers the period 2016-2019.<br /><strong>Design/Methodology/Approach</strong>: The present study is based on a content analysis approach to allow the measurement of risk disclosures. Six risk disclosure categories were identified as the major sections regarding this particular type of reporting. The analysis covers both quantitative and qualitative data that had been hand collected from the annuals reports and Pillar 3 risk disclosures reports. From a regulatory perspective, the study refers to the most relevant international accounting standards, namely, Basel III Agreement Pillar 3 (2016 revised version), and IFRS 7.<br /><strong>Research findings:</strong> It is expected that the GCC major banks, even though they must comply with the same risk disclosure regulation, will demonstrate specific disparities in their risk reporting. The results of the study suggest that Basel III risk reporting is significantly determined by size, leverage, cross listing, and government<br />ownership.<br /><strong>Theoretical contributions/Originality:</strong> The present study contributes to the literature by documenting the level of compliance of the top GCC banks with the recent BCBS risk disclosure requirements, and by providing empirical evidence regarding the quality of the released risk disclosures and its potential determinants. Another major<br />contribution of the paper is the development of a self-constructed disclosure index that reflects the most recent Basel III disclosure regulations (Pillar 3, 2016 version). <br /><strong>Practical implications:</strong> The findings of this study could be appreciated from different angles. From a regulatory perspective, this study might be insightful to GCC baking regulators in term of developing appropriate policies that will bring the banks to responsibly and professionally adopt an acceptable level of risk disclosure. At the global level, the findings could be insightful to the IASB concerning the degree of compliance of the banks in the<br />region with IFRSs related to risk reporting. Thus, it can help the IASB consider institutional differences among countries when revising its pronouncements.<br /><strong>Research limitations/Implications:</strong> The findings of the present study would be understood in light of some limitations. First, in the present study, we considered only the top 50 GCC listed banks, which could<br />impede the generalisation of the results from the content analysis and the regression on the rest of the banks in the region. Second, we were interested in this research about the implementation of the new 2016 market discipline Pillar 3 disclosures requirement. Expanding the time frame of the study could reveal additional insights into risk<br />disclosure practices.<br /><strong>Keywords:</strong> Corporate Risk Disclosures Basel Committee on Banking Supervision (BCBS), Basel III, Pillar 3, Market Discipline, IFRS 7, Gulf Cooperation Council (GCC)<br /><strong>JEL Classification:</strong> G21,G28,G32,G34,G38</p> <p> </p> Fethi Saidi Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.4 Achieving Operational Efficiency through Risk Disclosure <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study aims to investigate the effect of risk disclosure and CEO age on the operational efficiency.<br /><strong>Design/Methodology/Approach:</strong> A quantitative study was undertaken on 130 manufacturing firms listed on the Indonesian Stock Exchange in 2019. Risk disclosure was evaluated through the content analysis, while operational efficiency was measured using the Data Envelopment Analysis (DEA) technique. The data was analysed by utilising weighted least square regression.<br /><strong>Research findings:</strong> Results show that risk disclosure positively affects operational efficiency. The effect on CEO’s age however, is not substantial. These findings imply that a company becomes more efficient when it discloses more risk, while the CEO’s age has no bearing on the efficiency attained. Risk disclosure operates as a form<br />of risk awareness that demonstrates management’s commitment to resolving the problems.<br /><strong>Theoretical contribution/Originality:</strong> This study addresses the gap in the literature by empirically assessing how risk disclosure affect firms’ efficiency in developing countries. It also expands on previous literature by considering CEO age as determinant of the efficiency. The findings of the study support the stakeholder theory in which a company must consider its key stakeholders, especially those who encourage it to improve its efficiency, and hence, risk disclosure is required.<br /><strong>Practitioner/Policy implications:</strong> This research suggests companies to disclose more to improve operational efficiency. It also recommends investors to invest in firms committed to risk disclosure.<br /><strong>Research limitation/Implications</strong>: In this study, risk disclosure was measured by the number of risks disclosed in the annual report and did not consider other sources. Therefore, future studies should further explore risk disclosure in different media, such as the newspaper, corporate websites, and social medias. Additionally, this study was conducted based on one industry sector, and hence, future studies may incorporate broader range of industries to capture the impact of CEO characteristics.<br /><strong>Keywords:</strong> CEO Age, Data Envelopment Analysis (DEA), Operational Efficiency, Risk Disclosure<br /><strong>JEL Classification:</strong> M41</p> Septy Nur Sulistyawati Ani Wilujeng Suryani Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.5 Accounting Information and Supply Chain Management Practices in the Era of IR 4.0: The Case of a Japanese Subsidiary in Malaysia <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study aims to explore the interplay between accounting information and supply chain management (SCM) practices of a Malaysian subsidiary whose shares are largely owned<br />by a Japanese parent company.<br /><strong>Design/Methodology/Approach:</strong> This study follows a qualitative, case study methodology. The major sources of this study’s data were collected through semi-structured interviews, documentary reviews and informal observations.<br /><strong>Research findings:</strong> Influenced by its parent company’s management style that concerns aligning business practices with the fourth Industrial Revolution (IR 4.0), the case company has subscribed to a set of accounting systems and SCM practices to manage its complex business activities. As much as accounting systems influence its SCM practices more naturally, SCM practices also influence its accounting practices quite extensively. On the one hand, it has used accounting reports to manage its cashflow, to develop its marketing plan, and to monitor its performance. On the other hand, its SCM practices have shaped the ways pricing and performance measures are set with much negotiation.<br /><strong>Theoretical contribution/Originality:</strong> Using the Resource Based View (RBV) as a theoretical lens, this study analyses the role of accounting within the context of the supply chain network by exploring how accounting systems influence and/or get influenced by SCM practices.<br /><strong>Practitioner/Policy implications:</strong> The findings are important in shedding light on the interplay between accounting and SCM in view of their strong networks and mutual roles in relation to the natural supply chain setting of a Japanese subsidiary company by relating to the IR 4.0’s demands.<br /><strong>Research limitation/Implications:</strong> This study is based on one case study and that the specific accounting information that were reported in the company were not identified. This study has revealed that information sharing has streamlined SCM and influenced performance as members in the supply chain network are able to<br />collaborate in a more integrated and seamless manner to enhance the organisational competitive advantage as highlighted by the RBV theory and as emphasised by IR 4.0.<br /><strong>Keywords:</strong> Accounting Systems, Case Study, Japanese Subsidiary, SCM Practices, IR 4.0<br /><strong>JEL Classification:</strong> M41</p> Zubir Azhar Marini Nurbanum Mohamad Anwar Allah Pitchay Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.6 The Relationship between the Frequency of Technology Use and Electronic Commerce Adoption among Small and Medium-Sized Enterprises in Kuwait <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study aims to investigate the determinants of SMEs’ e-commerce adoption as well as technological, organisational, and environmental characteristics in Kuwait. Moreover, it aims to study the effect of the frequency of technology use as a moderator in SMEs’ e-commerce adoption.<br /><strong>Design/Methodology/Approach:</strong> A questionnaire-based survey was conducted among 259 SMEs.<br /><strong>Research findings:</strong> The results demonstrate a positive relationship between relative advantage, competitive pressure, and e-commerce adoption. Analysis of the level of technology use as a moderator reveals a significant difference in terms of the impact of compatibility, complexity, and supplier or customer pressure on e-commerce<br />adoption.<br /><strong>Theoretical contribution/originality:</strong> This study may be the first to assess the moderating role of the frequency of technology use in the context of SMEs’ e-commerce adoption. <br /><strong>Research limitation/implications:</strong> The paper contributes to e-commerce adoption research by highlighting the main influencing factors, identifying several important interactions based on the frequency of technology use, and recognising many practical implications for SME managers.<br /><strong>Keywords:</strong> E-commerce adoption, Frequency of technology use, Kuwait, SMEs, TOE<br /><strong>JEL Classification:</strong> M10, M15, M31</p> <p> </p> Salmi Mohd Isa Saleh Alenezi Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.7 Factors Driving Consumers’ Attitudes towards Facebook Advertisements in an Emerging Market: A Case Study of Vietnam <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study aims to: 1) determine the factors driving consumers’ attitudes towards Facebook advertisements in Vietnam; 2) examine the impact of genders and Generation Z attitudes towards<br />Facebook advertisement in Vietnam.<br /><strong>Methodology/Approach:</strong> This study employs a quantitative approach. Data were gathered from a sample of 477 Facebook users who are exposed to Facebook advertisements and resided in Ho Chi Minh City.<br /><strong>Research findings:</strong> The findings of this study show that personalisation, entertainment, interactivity, informativeness, and credibility have positive effects on attitudes towards advertising while irritation and privacy concerns appear to be negatively related. In addition, this study also illustrates that interactivity plays a role<br />in stimulating the ‘entertainment effect’ amongst the consumers. As expected, privacy concern is found to have a negative impact on credibility.<br /><strong>Theoretical contribution/originality:</strong> This study expands the previous empirical works by integrating two additional variables – personalisation and privacy concerns with user and gratification theory.<br /><strong>Policy implications:</strong> The result provides valuable input for advertisers. It offers an insight into facilitators and barriers of consumer acceptance towards Facebook advertisements; and how these aspects could shape customers’ perceptions of Facebook advertisements. <br /><strong>Research limitation:</strong> First, the sample was constrained to Ho Chi Minh City, which may have limited the generalisability of the findings. Second, this study considered only a limited number of predictors of attitudes towards Facebook advertising. The next limitation is that this research was conducted for products and<br />services advertised on Facebook in general and did not focus on a specific category of products or services.<br /><strong>Keywords:</strong> Advertisement, Attitudes towards Advertisements, Emerging Market, Facebook, Facebook Advertisement<br /><strong>JEL Classification:</strong> M3</p> Bang Nguyen-Viet Yen Thi Hoang Nguyen Tin Hoang Le Son Bao Do Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.8 The Role of R&D Intensity on the Export Intensity of Enterprises in Transition Economy: The Case of Vietnam <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study estimates the role of research and development (R&amp;D) expense with respect to the export intensity of Vietnamese enterprises.<br /><strong>Design/Methodology/Approach:</strong> Building upon the resource-based review, this study postulates that the R&amp;D expenses of an enterprise are positively associated with the export intensity of the enterprise. Data extracted from the Vietnam General Statistics Office Survey of 306 exporting Vietnamese firms were used to test the proposed<br />hypothesis.<br /><strong>Research Findings:</strong> Both Robust Standard Errors and Tobit Regression models reveal that the hypothesis is strongly supported with the control of firm-level and national-level factors.<br /><strong>Theoretical contribution/Originality:</strong> This study provides a new insight about the role of R&amp;D expense with respect to the export intensity of the enterprise in transition economies.<br /><strong>Practitioner/Policy Implications:</strong> This study suggests firms to continuously engage in innovation to gain a sustainable competitive advantage when exporting to other countries.<br /><strong>Research limitation/ Implication:</strong> Further research may consider a bigger sample size and utilise time-series or panel data.<br /><strong>Keywords:</strong> Export Intensity, R&amp;D Intensity, Transition Economy, Viet Nam<br /><strong>JEL Classification:</strong> F23, M16</p> Binh Tu Van Dut Vo Van Thanh Lan Ngoc Trang Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.9 The Challenges of Small and Medium Businesses in Managing Human Capital towards SMEs Performance – A Qualitative Study <p><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> Currently, machinery is replacing most human capital to save cost, but the value of human capital that contributes to the performance of SMEs is invaluable. SMEs were used to explain the connection between human capital and SMEs performance in South Australia.<br /><strong>Design/Methodology/Approach:</strong> Five case studies on SMEs in South Australia were used in this study. The analysis of qualitative data entailed data coding, within-case analysis, and cross-case analysis.<br /><strong>Research findings:</strong> The cross-case analysis result is unsurprising considering that all five firms depend on their employees to work and keep the firm in operation. The cross-case analysis results are mixed in respect to the connection between human capital and the several types of performance measurement. The results, therefore,<br />need to be interpreted with caution. SMEs perform solely through the skills, experience, and knowledge of their employees. This distinction occurs when the knowledge and information that employees gain are focused directly on the employee’s initiative, decision-making and critical thinking skills. Investment in human capital should be<br />done carefully based on the limited resources of SMEs.<br /><strong>Theoretical contribution/Originality:</strong> Most research has shown the link between human capital and firm performance. However, the degree to which investment in human capital contributes to the type of performance is yet to be explored based on qualitative data especially regarding SMEs in South Australia.<br /><strong>Practitioner/policy implication:</strong> The sustainable development goal (SDG) entails a steady improvement in people’s well-being in a good environment. Thus, decisions about investment in human capital and the use of temporary workers should be taken jointly by personnel managers, in accordance with the size of the firm. If this holistic view is ignored, a full understanding of the impact of human capital on the firm’s performance will be obscured. On the<br />other hand, a common feature that large and small firms share is an incompatibility between human capital and temporary employment.<br /><strong>Research limitation/implications:</strong> The main limitation of this study was the sample of the study that comprised solely of South Australia SMEs. Thus, this study outcome may not be generalisable to the whole Australia as a country. Further investigation across different states would expand knowledge of the complicated patterns of HC.<br /><strong>Keywords:</strong> Human capital, SME, Productivity, Profitability, South Australia<br /><strong>JEL Classification:</strong> M12</p> Yasmin Kamall Khan Jati Kasuma Azrin Ali Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1 10.22452/ajba.vol15no1.10 Editorial Notes Che Ruhana Isa Suhana Mohezar Ali Copyright (c) 2022 Asian Journal of Business and Accounting 2022-06-30 2022-06-30 15 1