Asian Companies Research Articles

ESG Scores, Financial Performance, and Carbon Emissions: Evidence from Southeast Asian Companies

ESG Scores, Financial Performance, and Carbon Emissions: Evidence from Southeast Asian Companies

Locus of control over global mine production– developments between 1985 and 2018 against a historical background

AbstractIt is a well-known fact that mine production has shifted from the industrialised countries of Europe, North America and Japan to emerging economies in Latin America, Africa and Asia and to Australia since the mid-20th century. The lack of self-sufficiency or high import dependence, in particular of the so-called critical metals, has become an issue of great political concern in these industrialised countries over the past 15 years. This study of six metals, cobalt, copper, iron ore, lithium, manganese and rare earths, contrasts this picture of geographical location of production with an analysis of where the control over mine production around the world is based, which we call the locus of control. Production might have moved out of the industrialised countries but control over production by companies based in the industrialised countries remains and has even increased between 1985 and 2018. We measure control as share of the total value of the production of the six metals. European transnational mining companies have increased their control from 14 to 18% while mining companies based in North America have lost control, a decline from 13 to 8%. When Australian companies, that have more than tripled their control in the same period, are added, control by the industrialised countries has increased to 44% of these six metals. Companies based in Latin America, Africa and Asia excluding China, taken together have maintained their control level, roughly a third of the total value of the six metals. Inside this group of countries African share has dwindled from 12 to 3% while Asian companies have more than doubled their share from 5 to 12%. Control by mining companies based in the republics of the former Soviet Union have been reduced from 25 to 7% while in the same period Chinese companies’ control has doubled from 6 to 12% of the total value of these six metals. Countries in Asia (excluding China) together with Latin American and African countries produce 51% of these six metals measured by the value at the mine stage. However, companies based in these countries control not more than 33% of the production.

Performance Measurement System Design for Integrated Thinking: Evidence from Japanese Electric Utility Providers

Asian companies are increasingly practicing integrated reporting to create long-term economic, environmental, and social value for investors and other stakeholders. To accomplish such value creation, far-reaching changes in strategies, management control systems, and governance are required, which is achieved through a management approach called integrated thinking. However, findings from previous studies indicate barriers in designing performance measurement systems, leading to misalignment between strategies and managers' decision-making. Therefore, this research study aims to expand existing knowledge on integrated reporting by (1) developing a conceptual framework for the characteristics of performance measurement systems to support integrated thinking and (2) analyzing the current status of performance measurement systems used by Japanese electric utility providers. To support integrated thinking, performance measurement systems should contain multidimensional and connected key performance indicators with quantitative target values and action plans that are integrated into the management reward system. By utilizing primary data, the most recent integrated reports of all 11 Japanese electric utility providers were analyzed trough a manual content analysis and percentage analysis. On average, the requirements of performance measurement system design are fulfilled to a degree of 56 %, while the lowest degree being 39 % and the highest degree being 75 %. In most cases, companies use multidimensional key performance indicators with incomplete target values and vaguely defined action plans. Key performance indicators are insufficiently connected and integrated with rewards systems, indicating the outside-in approach of integrated reporting. Larger companies that explicitly refer to the <IR> Framework tend to use more sophisticated performance measurement systems. The findings suggest several areas for improvement, such as connectivity between KPIs as well as further integrating non-financial KPIs with the rewards system.

The Influence of Corporate Governance on The Financial Performance of The Asian Stock Market of Large Companies

The research aimed to know the impact of corporate governance with its variables (board size and board independence) on the financial performance of large Asian companies in the stock market. To achieve the research objectives, the study used the analytical approach and collected data from the stock market from 2019 to 2023 for 118 large company. Financial performance was also evaluated by using the rate of return on assets. The results concluded that there is a positive and important relationship between corporate governance with its variables (board size and board independence) with financial performance. The study indicates increased awareness and interest by the management of public shareholding companies regarding the importance of adhering to the rules of governance.

Comparative Analysis: Resource Consumption and Environmental Pollution by Subsoil Users in Northern Asia (Russia)

This article examines resource use issues and the anthropogenic impact on the environment of companies operating in the mineral resource sector of northern Asian regions. The research aims to comprehensively analyze resource consumption and environmental intensity indicators for leading companies in mineral extraction. A set of indicators reflecting the necessary parameters for mineral resource consumption and pollution intensity due to their production activities is constructed based on quantitative and cost indicators. A pollution intensity assessment is carried out based on environmental intensity indicators. The sectoral and corporate-level indicators are of the most interest in industrial production. The study identified seven critical northern Asian companies that play a decisive role in the mining industry, which were examples for analyzing material resource consumption and production greening pace. Reducing resource use and environmental impact is a crucial task for sustainable development. This study emphasizes the importance of evaluating resource consumption and environmental impact for companies in the mineral resource sector, providing valuable insights for companies, government bodies, and international organizations working towards the region’s sustainable development and efficient resource management.

The individual nature of cultural friction in cross-border M&As: exploring the role of face when working with Asian counterparts

PurposeThis study aims to address a significant gap in the literature by exploring the individual nature and microfoundation perspective of cultural friction during the integration phase following cross-border mergers and acquisitions (CBMAs). It focuses on the role of face, a pivotal facet of interactions within Asian organizations, elucidating its importance in post-M&A integration outcomes.Design/methodology/approachUsing a conceptual approach, this study draws on three bodies of literature, namely, cultural friction, microfoundations and face concerns. It reconsiders cultural friction as a microfounded construct and introduces face concerns as a pivotal element to understanding the challenges faced by managers at the forefront of CBMAs involving Asian companies. The conceptual approach is illustrated with examples for the world of practice.FindingsThis research makes two significant contributions to the fields of CBMAs and cultural friction. First, it demonstrates the relevance of the concept of cultural friction at the individual level, shedding light on the complex post-CBMA integration process. Second, this study demonstrates the critical role of face concerns in the sociocultural integration following CBMAs. This is underexplored in extant literature.Originality/valueThe crucial role of face is well known to those working in Asia. Yet academic inquiry remains underdeveloped on this issue for CBMAs. The friction derived from face concerns provides additional insights into the nature of the cultural challenges confronting managers during sociocultural integration and elucidates the micro-mechanisms influencing individuals’ responses to cultural friction. This research responds to calls to examine the human side of M&As uncovering previously neglected issues within intercultural managerial encounters.

The Impact of the Effectiveness of Smart Quality Management on the Profitability Enterprises of Major Asian Companies

This study aims to identify the extent of the influence of smart quality management practices and their impact on the profitability performance of major Asian companies. This paper used a sample of 143 major companies for the purpose of testing the relationship from the years 2020 to 2023. The study concluded that there is a positive and important link among smart quality management and profitability performance. Smart quality management is considered important in modern concepts that represent a new technical method for managing business processes and institutions in general. Smart quality management aims to improve profitability and productivity. This study considers smart quality management to be an integrated management system that aims to improve the firm’s reputation and growing its profits and market share, and then confirm its existence and link in the field of effort.

Challenges and Prospects of Developing Light Industry in Russia

Today enterprises of light industry face serious problems arising due to competition with Asian companies, problems with investment and staff. Comparative analysis of key figures of light industry in Russia and China shows considerable backwardness of Russian enterprises by the level of fund-equipment and labour productivity. At the same time, it should be noted that in Russian light industry there are enterprises with high fund-equipment but low fund-return and not very high labour productivity. The author came to the conclusion that low efficiency of enterprises of light industry can form the initial cause of current problems. It was shown that the principle way of developing light industry is modernization of technological processes on the basis of advanced digital technologies, artificial intellect, robot-engineering, acute scientific solutions in management, which could give an opportunity to cut the need in unskilled personnel, to raise labolur productivity and the quality of products and cut prime cost and final price. Apart from that to resolve problems of efficiency it is necessary to take into account individual conditions of enterprise functioning and improve quality of management. When decisions aimed at measures of state support for enterprises of light industry are made, including investment, it is needed to take into consideration their technological standing to elaborate grounded strategy of support, development and control.

Forestry in the Congo Basin Countries and Measures to Improve its Efficiency

The article offers insight into the main stages of the formation of forestry into an independent branch of the economy in African countries, the forest areas of which constitute a common ecosystem, one of the largest in the world. The features of the system of relations between the main subjects of economic activity in the forest sector, that developed during the colonial period, and its subsequent evolution after the transition to the planned formation of the forest management sphere are characterized. The results of the implementation of forest management plans in concessions are analyzed, it being the necessary condition for the logging companies which aim to obtain an official confirmation of compliance of their activities with international standards subject to local conditions and provisions of national laws. One of the generally accepted, by the African countries as well, and authoritative evidence of responsible logging, which at the same time confirms the legality of the origin of the wood offered to the buyer, is a certificate issued by the international commercial organization Forest Steward Council (FSC). The introduction of a certification system is seen as an incentive to promote sustainable forest management and sustainable forest management in timber supplying countries to foreign markets. However, there are examples of unscrupulous companies continuing to harvest wood on the principle of “forest mining”, while resorting to illegal cutting of trees outside the concessions. This negatively affects the competitiveness of companies that strive to maintain a reputation as a supplier of legally harvested and environmentally friendly wood. They are forced to reduce the scope of their activities in the region. The article also notes the gradual reorientation of timber supplies from the countries of the region to the Asian markets, which is characteristic of recent years, where demand for this product is growing, regardless of the sources of its origin. At the same time, its purchases by its traditional buyers, European countries, were declining. Nevertheless, Asian companies, primarily from China and Vietnam, are beginning to show an increasing interest in purchases of certified wood, hoping at the same time to expand export supplies of finished products to countries with strict bans on the import of wood (and wood products) harvested illegally. Gabon’s experience in using the resource potential of forests to create the basic foundations of its own timber industry was also noted.

Surfactin as an ingredient in cosmetic industry: Benefits and trends.

Surfactin is a natural surfactant almost exclusively produced by Bacillus species with excellent physical-chemical, and biological properties. Among innovative applications, surfactin has been recently used as an ingredient in formulations. The antibacterial and anti-acne activities, as well as the anti-wrinkle, moisturizing, and cleansing features, are some of the reasons this lipopeptide is used in cosmetics. Considering the importance of biosurfactants in the world economy and sustainability, their potential properties for cosmetic and dermatological products, and the importance of patents for technological advancement in a circular bioeconomy system, the present study aims to review all patents involving surfactin as an ingredient in cosmetic formulas. This review was conducted through Espacenet, wherein patents containing the terms "cosmetic" and "surfactin" in their titles, abstracts, or claims were examined. Those patents that detailed a specific surfactin dosage within their formulations were selected for analysis. All patents, irrespective of their publication date, from October 1989 to December 2022, were considered. Additionally, a comprehensive search was performed in the MEDLINE and EMBASE databases, spanning from their inception until the year 2023. This complementary search aimed to enrich the understanding derived from patents, with a specific emphasis on surfactin, encompassing its associated advantages, efficacy, mechanisms of action on the skin, as well as aspects related to sustainability and its merits in cosmetic formulations. From the 105 patents analysed, 75% belong to Japan (54), China (14), and Korea (9). Most of them were submitted by Asian companies such as Showa Denko (15), Kaneka (11) and Kao Corporation (5). The formulations described are mainly emulsions, skincare, cleansing, and haircare, and the surfactin dose does not exceed 5%. Surfactin appears in different types of formulas worldwide and has a high tendency to be used. Surfactin and other biosurfactants are a promising alternative to chemical ingredients in cosmetic formulations, guaranteeing skin health benefits and minimizing the impact on the environment.

The nexus of ESG and environmental sustainability: Does gender diversity make a difference in Asian companies?

The nexus of ESG and environmental sustainability: Does gender diversity make a difference in Asian companies?

The impact of CEO compensation and governance disclosure on firm value moderated by integrated reporting

Firm value can increase market confidence, not only for current performance but also for the company’s prospects in the future Fama (1978). To prove empirically the effect of chief executive officer (CEO) compensation and governance disclosure on firm value moderated by integrated reporting (IR) is the aim of this study. The study population is Asian companies registered in the Integrated Reporting database examples. Based on the specified sample criteria, 135 secondary data were obtained from 2019–2021. The analysis tool used to process the data is WarpPLS 7.0. This study gives the result that firm value is influenced by governance disclosure and IR moderates the effect of governance disclosure on firm value, while CEO compensation has no effect on firm value. The practical implications of this study are to confirm the importance of corporate governance disclosure, the role of IR in increasing the value of companies, and its impact on investment decisions. In addition, this study is also useful for regulators in relation to the preparation of corporate financial reporting policies so that they are transparent and accountable.

Foreign direct investment from Japan, South Korea and China in the Czech Republic: A comparative analysis

Multinational companies from Japan, South Korea and China began to actively penetrate Czech market starting from the mid-1990s. By 2021, Japan was the leader in terms of foreign direct investment stock in the Czech Republic ($ 4.7 billion), followed by South Korea ($ 3.4 billion); and China ($ 760 million). The methodological basis of the paper is Dunning’s eclectic paradigm, which makes it possible to explain foreign investment activities from the point of view of the simultaneous availability in these processes of ownership, location and internalization advantages. As a result of a comparative analysis, the author comes to the following conclusions. In the processes of activity of foreign affiliates of Asian companies in the Czech Republic (as part of the implementation of existing ownership advantages), the following features were identified: concentration on the main field of activity of the parent company; concentration of activity in those industries that are most developed in the Czech Republic (industry agglomeration effect); clustering of affiliates around the leading company and main activity; diversification of the activities of foreign affiliates by supplementing the main activities of the parent company with the activities in related sectors. To explain the weak presence of Chinese MNCs in the Czech market and the more deep activity of South Korean and Japanese MNCs, a “wedge-shaped” foreign market entry was proposed; it is based on the idea of internalization advantages of. The leading company represents a spearhead of the “wedge-shaped” foreign market entry. A large MNC possesses powerful and well-developed ownership advantages. It is the first to enter foreign market in the sector that is main one for its activity in the national market; and it is followed by foreign affiliates operating in the main and related sectors in a kind of expanding “wedge”. It is the penetration that enables MNCs to gain a foothold in the market, leveraging both ownership, location and internalization advantages.

IMPACT OF INTEGRATED REPORTING DISCLOSURE ON ACCOUNTING-BASED PERFORMANCE OF ASIAN LISTED COMPANIES

This study aims to examine the relationship between the quality of integrated reporting (IR) disclosure and firm performance in Asia listed companies. An integrated report score based on eight content elements taken from the IIRC framework was used to assess the quality of the IR disclosures of 90 Asian companies in 2019. Firm performance is evaluated using accounting-based measures such as return on assets (ROA) and return on equity (ROE). This study used a positivist research approach, the results show that the quality of IR disclosure of listed companies in Asia is sufficient. The study found a significant positive relationship between IR disclosure quality and ROA & ROE. It shows that the higher the quality of IR disclosure, the better the economic benefits of the company. The main practical implications of this study focus on calling for improved quality of IR issued by listed companies in Asia, as it provides evidence for a higher degree of financial performance achieved through high-quality disclosure of IR.

ESG rating of capital's effect on firms' financing sources: a case study of Asian companies

ESG rating of capital's effect on firms' financing sources: a case study of Asian companies

Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries

Green bonds offer investors the opportunity to align their investments with their values and contribute to positive social and environmental impacts. These bonds are a promising tool for channelling investment towards projects that are environmentally friendly and promote the transition to a low-carbon and sustainable economy. Arguably, they play an important role in the fight against climate change and the achievement of sustainable development goals. However, there are not many studies that have examined the impact of green bond issuance on stock market reactions. This study aims to examine the effect of green bond issuance on investor attention and the stock market using route analysis and the SEM-PLS method, either directly or through the inclusion of investor attention as an intervening variable. This study performed content analysis on the annual reports of publicly listed companies in five ASEAN countries over a period of five years. This study demonstrates that investors’ interest in green bonds increases proportionally to their issuance. However, green bond issuance does not significantly influence stock market reactions. In addition, the issuance of green bonds has had no discernible effect on the stock market's response as measured by investor attention. The findings in this study provide some insights on how green bond issuance can influence stock market reactions through investor attention. Investors can use these insights to make future investment decisions, particularly in ASEAN companies.

The Impact of Environmental Performance on Economic Growth: A Study of ASEAN Countries

The aim of this study is to explore the effect of environmental performance on economic growth, the effect of environmental performance on health expenditure, the effect of health expenditure on economic growth, and the role of health expenditure in mediating the effect of environmental performance on economic growth. The study uses a quantitative research method with a verification approach and utilizes secondary data from the World Bank Indicator. Purposive sampling has been used in this study, and the sample involved countries from the ASEAN region. The statistical analysis tool used in this study is EViews version 12. The results indicate that environmental performance has an impact on economic growth, that environmental performance affects health expenditure, that health expenditure has an impact on economic growth, and that health expenditure can mediate the impact of environmental performance on economic growth. According to the study's findings, ASEAN companies must reduce the environmental damage caused by their activities in order to improve their environmental performance, which will help boost economic growth in ASEAN countries

The Effect of ESG on ASEAN Public Companies’ Green Innovation per 2021

The aim of this study is to test the effect of ESG on ASEAN public companies’ green innovation per 2021. By doing a directed content analysis combined with the assistance of autocoding through machine learning, evidence shows that ASEAN companies were still slow in terms of adapting several green innovation dimensions. Furthermore, we do an OLS regression analysis that includes several financial control variables to determine the effect of the ESG score on the ASEAN firms’ green innovations. In conjunction with that we also run robustness checks by using robust OLS regression and the result is aligned with the common OLS regression. Finally, this article summarizes that there is a significant effect of the ESG score on ASEAN companies’ green innovation and hopefully the investors can rely on the ESG score to interpret the green innovations done by the companies.

The most attractive companies in the labour market based on culture place of origin

This paper analyses the differences in the attractiveness of companies according to their country of origin. The aim is to expand knowledge about which characteristics make organisations more attractive to workers based on their place of origin (Anglo-Saxon, Northern-Central European, Mediterranean, Asian regions). In addition, it is analysed if the COVID-19 has caused changes in the elements that make up the attractiveness. The sample comprises the ranking published by the journal Actualidad Económica about the most attractive companies to work for in Spain, during 2013-21. The variables used in the ranking are: Talent-Management, Remuneration, Work-Environment, CSR and Training. Other control variables like geocultural area are used. For this purpose, an econometric model of unbalanced panel data with random effects is proposed. Results show there are differences in the assessment of professional attractiveness according to the companies' place of origin and culture. Remuneration and permanence in the ranking are the only variables which are relevant regardless of the culture. Talent Management, Working Environment and Training, size, and stock price influence Western countries unequally. The opposite occurs for SCR, which only affects Asian companies. Also, COVID-19 has affected unequally the assessment of the attractiveness of companies.

Entry modes for Chinese enterprises in Latin America

AbstractThe Belt and Road Initiative (BRI) has been an important project for President Xi Jinping on foreign soil. The initiative gained momentum through colossal investments in Eurasia and Africa, mainly through infrastructure projects, backed by generous funding from Chinese financial institutions. A few years later, Latin America emerged as a new target for geographically extending the BRI. The region provides sufficient motivation to entice Chinese investors; it is well endowed with natural resources, offers a market of approximately 670 million people, and has many unmet needs. In addition, recent geopolitical reasons such as the ongoing trade war between the United States and China may give Chinese enterprises indirect access to the world's largest consumer market. We present a brief overview of the relationship between China and Latin America, focusing on the mode of entry of Asian companies into these territories. We analyze the primary entry mode of Chinese enterprises and whether they do so through Greenfield Investment (GI) or Mergers and Acquisitions (M&A). For this purpose, we use data from the China Global Investment Tracker. Thus, we intend to provide a complete picture of how public and private Chinese organizations are gaining a foothold in Latin America, and present its managerial implications.