Asset Investment Diversification, Bankruptcy Risk and the Mediating Role of Business Diversification

Thanh, Vu Huu; Hà, Nguyễn Minh; McAleer, Michael

doi:10.1142/s2010495221500019

Cited by 9 publications

(4 citation statements)

References 30 publications

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“…In this paper, we apply both the Fixed Effect and Random Effect Models and use panel data from the sustainable stock market returns of six Asian countries. Extension of our paper includes using the approaches employed by our paper to study agriculture (Aye and Odhiambo, 2021), social media (Kim, 2021), risk (Chow, et al, 2019), decision-making (Hasan-Zadeh, 2019), volatility (Demirer, et al, 2020), investment (Liew, et al, 2008;Mroua, et al, 2017;Nkeki, 2018;Karp and Van Vuuren, 2019;Yang, et al, 2019;Thanh, et al, 2021). There are many other applications, readers may refer to Hon, et al (2021) and Wong (2020) for more information.…”

Section: Limitations and Further Studymentioning

confidence: 99%

Good Governance and Sustainable Investment: The Effects of Governance Indicators on Stock Market Returns

2022

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Purpose: This research studies the impacts of the six Worldwide Governance Indicators (WGI) on sustainable investment returns in the Asian region.Design/methodology/approach: This research uses the WGI data as proxied of good governance and employs The Fixed Effect Model (FEM) and Random Effect Model (REM) on the panel data from the sustainable stock market returns of six Asian countries to examine the relationship among variables. Further, the Feasible Generalized Least Squares (FGLS) Regression panel regression was conducted to achieve robust findings.Findings: Our empirical analysis found that political stability and absence of violence (PSA) and regulatory quality (REQ) positively influence sustainable investment returns in the Asian region. While control of corruption (COC) exhibits a significant negative impact on sustainable investment returns. These findings imply that more excellent political stability and reasonable regulations contribute to higher stock market returns. Conversely, contradictory with the Control of Corruption leads to downward stock market returns as the growth of the COC index increases. Research limitations/implications:This research has several limitations, including the lack of comprehensive sustainable stock market data in the Asian region and a short transaction period. Consequently, future research could categorize the market as developed or emerging, classify the sample based on the efficient market category, expand the sample size and include data from outside the Asian region.Practical implications: This research has several crucial policy implications for sustainable investors concerning the country-level governance index to create profitable and sustainable portfolio strategies. Moreover, policymakers should strengthen the implementation of anticorruption to increase the sustainable investors in the Asian region.Originality/value: This research contributes to the recent literature presenting causal relations of quality country-level governance on sustainable investment returns in the Asian region.

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Section: Limitations and Further Studymentioning

confidence: 99%

Good Governance and Sustainable Investment: The Effects of Governance Indicators on Stock Market Returns

2022

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“…Terdapat beberapa penelitian terkait hubungan antara OCFS dan CR dengan financial distress. Penelitian oleh Qomarullah et al (2017) dan Thanh et al (2021) menemukan bahwa OCFS berpengaruh negatif terhadap kemungkinan kejadian financial distress, sementara itu hasil berbeda didapatkan oleh Balasubramanian et al (2019) dan Permata & Juliarto (2021) yang menemukan OCFS tidak berpengaruh. Sementara itu, terdapat beberapa penelitian pula terkait pengaruh CR terhadap kemungkinan kejadian financial distress.…”

Section: Studi Literatur Peneltian Terdahuluunclassified

“…Artinya semakin besar OCFS yang dimiliki perusahaan maka semakin kecil pula perusahaan tersebut mengalami financial distress. Temuan ini sejalan dengan penelitian yang dilakukan oleh Qomarullah et al (2017) dan Thanh et al (2021) yang juga menemukan bahwa OCFS memiliki pengaruh negatif terhadap kemungkinan terjadinya financial distress pada suatu perusahaan. Keberlangsungan suatu perusahaan bergantung pada kemampuannya untuk menghasilkan profitabilitas dan pengelolaan terhadap arus penerimaan dan pengeluaran kas.…”

Section: Pembahasanunclassified

Pengaruh Faktor Keuangan terhadap Financial Distress dengan dimoderasi oleh Komite Audit

Evrilianingsih,

Shaffana Amalia

2022

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Research on the company's financial difficulties is very important because it can lead to bankruptcy which will have a bad impact on the country's economy. This study aims to provide empirical evidence about the influence of financial factors, namely operating cash flow per share (OCFS) and current ratio (CR) in predicting financial distress moderated by the expertise of the audit committee. This research is a quantitative study on property & real estate sector listed on the Indonesia Stock Exchange (IDX) in the 2015-2019 period. The number of samples as many as 36 companies from 73 populations was obtained through the purposive sampling technique. This study uses the Moderated Regression Analysis (MRA) method in analyzing the processed data using the SPSS application. The results showed that operating cash flow per share can reduce financial distress while the current ratio has no effect on financial distress. In addition, it was found that the expertise of the audit committee strengthens the relationship between operating cash flow per share and financial distress, but not the relationship between the current ratio and financial distress. This research is useful to provide insight to investor,company’s management, financial institutions, stakeholders and other related parties in future decision making.

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“…Nonetheless, in today's economy, acquiring other firms for portfolio diversification is a common strategy (Thanh et al, 2021). Strategic investments are usually pursued by firms within the same industry that the target operates to acquire a given technology, outperform competition, or gain market power.…”

Section: Manda Motivation and Bidder Typementioning

confidence: 99%

Shaping M&A Deal Outcomes: From Failure to Enabling Better M&A Performance

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The M&A literature is broad and fragmented. It studies M&A success and failure from various disciplinary perspectives and examines M&A deal outcomes at separate stages of the M&A process. Despite the increase in M&A activity, M&A failure rates continue to be high throughout recent years. This dissertation comprises four separate studies which shed light on this issue. Paper I is a literature review in which I systematically analyze studies on M&A failure. The findings reveal three blind spots of the current M&A literature which need to be addressed. These are a) the need for clarity on the definition and operationalization of M&A failure, b) the need for more integration among disciplines, and c) the need to adopt a more processual perspective on M&A phases instead of a within-phase analysis. The consequent three papers are empirical studies which contribute to filling the identified research gaps. Paper II is a quantitative study on target pricing which takes different types of bidders into account. I conclude that more research is needed to understand the outperformance of private equity funds. As this stream of literature is in a nascent stage, I call for more qualitative and explorative research on the topic. In a consequent qualitative study, I explain M&A deal outcomes with regard to the private equity bidder type. In this study, three characteristics (i.e., organizational set-up, private equity investors’ professional identities, and an integrative work approach) are identified which were brought together into a theoretical framework that explains how private equity professionals can enable better M&A performance. The findings further underline the effectiveness of specific incentivization approaches applied in private equity funds. In the fourth study, the research focus is on the firm’s organizational culture, M&A teams, and individual professionals. Three prevailing team roles (i.e., project manager, expert and executor) are identified which require a specific set of soft and hard skills that explain how M&A teams can enable M&A success in terms of deal execution and completion. Furthermore, evidence to how aspects of project timing, such as deadlines and simultaneous projects, shape the team members’ work is provided. Finally, the findings underline the importance of accumulating experience and learning effects on M&A deal outcomes, shaping both the M&A team culture and the team members’ skill sets.

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Asset Investment Diversification, Bankruptcy Risk and the Mediating Role of Business Diversification

Cited by 9 publications

References 30 publications

Good Governance and Sustainable Investment: The Effects of Governance Indicators on Stock Market Returns

Good Governance and Sustainable Investment: The Effects of Governance Indicators on Stock Market Returns

Pengaruh Faktor Keuangan terhadap Financial Distress dengan dimoderasi oleh Komite Audit

Shaping M&A Deal Outcomes: From Failure to Enabling Better M&A Performance

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