Asymmetric Information Theory Research Articles

The Green Development in Saline–Alkali Lands: The Evolutionary Game Framework of Small Farmers, Family Farms, and Seed Industry Enterprises

Amid global climate change and population growth, the prevalence of saline–alkali lands significantly hampers sustainable agricultural development. This study employs theories of asymmetric information and bounded rationality to construct an evolutionary game model, analyzing the interactions among small farmers, family farms, and seed industry enterprises in the context of saline–alkali land management. It investigates the strategic choices and dynamics of these stakeholders under the influence of economic incentives and risk perceptions, with a focus on how government policies can foster green development. Utilizing Delay Differential Equations (DDEs) for simulations, this study highlights the risk of “market failure” without government intervention and underscores the need for government participation to stabilize and improve the efficiency of the green development process. The findings reveal that factors such as initial willingness to participate, the economic viability of salt-tolerant crops, seed pricing, research and development costs, and the design of incentive policies are crucial for sustainable land use. Accordingly, the paper proposes specific policy measures to enhance green development, including strengthening information dissemination and technical training, increasing the economic attractiveness of salt-tolerant crops, alleviating research and development pressures on seed companies, and optimizing economic incentives. This study provides a theoretical and policy framework for the sustainable management of saline–alkali lands, offering insights into the behavioral choices of agricultural stakeholders and supporting government strategies for agricultural and environmental protection.

Determinant of earnings management practices in manufacturing companies

Research aims: This study aims to examine the effect of audit committees, independent commissioners, and the presence of women on boards, such as the chief executive officer and chief financial officer, on earnings management practices.Design/Methodology/Approach: This research used a quantitative method with a final panel data sample of 25 companies in the manufacturing sector for three years from 2020 to 2022. Hypothesis testing employed the regression model with the Common Effect Model (CEM) test. Sampling was conducted using secondary data on the Indonesia Stock Exchange (IDX) and each company's website.Research findings: The results of the study demonstrated that independent commissioners, independent audit committees, audit committee expertise, audit committee activities, and audit committee size yielded a significant effect on earnings management practices, while female CEOs and female CFOs had no significant impact on earnings management practices.Theoretical contribution/Originality: This research develops a theory that previously did not exist; in this research, the authors used asymmetric information theory to test the independent and dependent variables. Additional variables by suggestions in previous research are provided; therefore, it is hoped that this can strengthen the results of prior research. Practitioner/Policy implication: The practical implication of this research is that the existence of an independent audit committee with a positive influence on earnings management can improve the company's financial performance, make it easier for managers or internal company parties to make better decisions in the future, and meet performance targets set by other parties, such as investors and creditors. Profit management can also be used to obtain tax benefits. During the previous pandemic, the government implemented tax compensation for taxpayers who met the criteria.

Effects of Digital Credit on Small Business Performance in Obunga, Railways Ward, Kisumu County, Kenya.

Small and Micro Enterprises play an important role in economic development of any nation by harnessing human capital, use of raw materials and technology. They require enough funds to facilitate expansion of operations, develop new products, hire new staff and acquire new facilities. Lack of capital and financing conversely has been identified as a major factor affecting their performance leading to their failures. Innovations in financial technology in the form of digital credit have taken advantage of these financing gaps and have come up with powerful tools to mitigate financing barriers faced by small businesses. This study sought to address the effects of digital credit on small business performance in Obunga, Railways ward in Kisumu, Kenya. The business performance was determined through operating cash flow, Sales volume and Net profit margin. Asymmetric Information theory and Default Risk Theory of Credit were selected to anchor this study. The study adopted descriptive research design. The target population was 454 Small and Micro Enterprises while the sample size was 212 Small and Micro Enterprises. The study adopted both stratified and simple random sampling techniques. Primary data was collected using structured questionnaires and interviews. Secondary data was collected through reviewing available records regarding digital credit and small business performance. The study adopted content validity. The data collected was analyzed using the Statistical package for social sciences version 24.0. Data was analyzed using descriptive statistics. The study findings conclude that the performance of the SMEs could be seen from profit margins, sales when they access digital credit.The study in addition suggests that the fast growth of fintechs had increased the cost of borrowing to SMEs and their repayment problems even though they offer flexible loan contracts to SMEs who have the ability to determine their own preferred loan repayment schedule. The study recommends the managers and owners of SMEs in Obunga ward to adopt an entrepreneurial mind-set that would support their ability to better gain financial access from various financial institutions Based on the study findings, it is also recommended that the government mobile loan institutions should consider lowering the costs involved in lending the credit. Lastly, the study recommends the managers and owners of SMEs in Obunga ward to make use of available flexible repayment options to borrow what their businesses actually require.

Mobile Phone Technology, Agency Banking Services, Online Banking Services and Financial Inclusion of Small and Medium Enterprises in Kenya

The study sought to examine the effect of mobile phone technology, agency banking services and online banking services on financial inclusion of Small and Medium Enterprises in Kenya. This study originates from the Doctoral dissertation of the first author where the co-authors served as supervisors. Technology Acceptance Model and Asymmetric Information Theory were adopted. The study adopted explanatory research design. The top 100 Small Medium Enterprises in Kenya constitute the target population and the sample size was 200 based on purposive sampling technique and simple random sampling where two respondents were picked from each Small Medium Enterprises of interest. Multiple regression technique was used for the analysis of data. A response rate of 81.5 percent was achieved. Primary data was used which was collected using a questionnaire. The study used multiple regression analysis. It was established that mobile phone technology and agency banking services had insignificant effect on financial inclusion of small and medium enterprises in Kenya. The study found that online banking services had significant effect on financial inclusion of small and medium enterprises in Kenya. The study recommends that business managers should capitalize on the underlying benefits of online banking by fully utilizing and exploring its various services. Online banking services should be supported and enhanced by the government in view of its importance in fostering financial service accessibility which in turn improves financial inclusion. Further studies can evaluate the effect of mobile phone technology and agency banking services on financial inclusion of small and medium enterprises in Kenya based on a different methodology.

Empirical Analysis on the Impact of Management Efficiency and Watch Loans on the Bankruptcy Rate of Community Banks in Tanzania: A Random Effect Model Approach

This paper analyses the impact of management efficiency and watch loans on the bankruptcy rate of community banks in Tanzania, for the period ranging from 2006 to 2021. In Tanzania, for the period starting from 2017 to 2019, seven community banks were closed by the Regulator while others were being merged to increase their operational efficiency and going concern. The failure of these banks raised a lot of concerns among banks’ stakeholders including private sector, the government and the general public. The study used archival reviews as one of the tools for secondary data collection in quantitative research where panel data were collected from community banks and the Bank of Tanzania publications. The employed sample size was 11 community banks, with a total of 176 observations. The panel data analysis has been conducted using statistical software (Stata) with the random effect model being used to generate regression results as one of the statistical models for panel data analysis. The research findings indicated significant negative correlations between the explanatory variables, namely, management efficiency and watch loan ratios with bankruptcy rates as computed using the Altman’s model approach specific for developing countries. This paper contributes to the contagion theory by arguing that not only bank runs that causes bank failure, but also there are other factors such as; management inefficiency and high level of watch loans as justified by the theory of market structure and asymmetric information theory. Further, for the purpose of diminishing bankruptcy rate of community banks, the study recommends adequate credit management policy in terms of proper credit appraisal systems and strong corporate governance policy, which reduce level of watch loans and operational costs.

The Influence of Financial Indicators and Underwriter Reputation on Depreciated Stock Prices

This research aims to analyze the influence of financial indicators and underwriter reputation on the level of stock underpricing during Initial Public Offerings (IPOs) on the Indonesia Stock Exchange (IDX). The phenomenon of underpricing has gained attention in securities market research in various countries. This study adopts a conceptual analysis approach based on a review of existing literature. The theory of asymmetric information also serves as the foundation for explaining the underpricing phenomenon in IPOs. Factors include Return on Equity (RoE), Financial Leverage, Current Ratio, Earnings per Share (EPS), Size, Proceeds, Company Age, Auditor Reputation, Underwriter, and Industry Type. Therefore, this research aims to test the influence of financial indicators and underwriter reputation on the level of stock underpricing in IPOs on the IDX. Consequently, the findings from this research can be used as a basis for comparison with similar studies in other countries. This can help in understanding the differences and similarities in the phenomenon of stock valuation in various global capital markets.
 Keywords: IPO Underpricing, Financial indicators and Underwriter reputation

How innovation funding leads enterprises to engage in research and development: Small and medium enterprises' perspective.

Technology-based small and medium enterprises (SMEs) are the driving force behind China's economic and technological development. However, these enterprises often face challenges in financing their research and development (R&D) activities due to limited financing opportunities. Previous research has primarily focused on the resource attributes of government innovation subsidies, which serve as a crucial funding source for these SMEs. This paper aims to explore the impact of government innovation subsidies on firms from a novel perspective, considering the signaling characteristics of these subsidies. The theoretical foundation of this study lies in the asymmetric information theory and the signaling mechanism through which government subsidies send signals about enterprises. The study uses enterprise data from 2012 to 2019 to investigate the effect of government subsidies on the R&D investment of enterprises listed on the SMEs Board in Chinese stock market. The results reveal a significantly positive effect of government subsidies on the R&D investment of SME Board-listed enterprises and verify the mediating role of financing constraints in this effect. The extent to which government subsidies influence the R&D investment of SME Board-listed enterprises is associated with the enterprises' ownership characteristics, debt ratios, and times interest earned ratios. This study contributes to the literature on the SMEs Board market and may provide the Chinese government insights into developing industry policies that maximize the effectiveness of government subsidies.

Building the Model to Measure the Quality of Financial Statements – A Case Study of Vietnamese Enterprises Listed on the Stock Market

Bloomberg's recent recognition of Vietnam as Asia’s “new tiger economy” is not coincidental. The country is experiencing a surge in mergers and acquisitions (M&A) activities, with foreign billionaires acquiring majority stakes in major Vietnamese enterprises. However, obstacles hinder foreign investment, mainly due to the poor and unclear quality of financial statements, as reported by the World Bank and IMF in 2014. Drawing from agency theory (Jensen and Meckling, 1976) and asymmetric information theory (Akerlof, Spence, and Stiglitz, 1970), we aim to develop a model that measures the quality of financial statement information. By consulting with experienced academics, experts, and specialists in accounting and auditing, we identify factors that impact the quality of financial statements. We employ qualitative analysis and the CFA and EFA methods to validate these impacting factors, conducting surveys with listed enterprises in Vietnam. Based on our findings, we will propose solutions to enhance the quality of financial statements. Our case study focuses on listed enterprises in the Vietnam Stock market, as it is the primary and most effective platform for attracting direct investment through M&A activities and investment funds.

Effect of Credit Management on Financial Performance of Commercial Banks in Eldoret, Kenya

Purpose: The main aim of the current study was to find out the effect of credit management on financial performance of commercial banks in Eldoret, Kenya. The study specifically focused on finding out the effects of credit terms, credit standards and collection policy on financial performance of commercial banks operating in Eldoret. The study was guided by both Asymmetric Information Theory, Credit Scoring Theory and Theory of Performance.
 Methodology: A descriptive survey design was employed in the study with the target population comprising of 30 licensed commercial banks operating in Eldoret. The unit of observation comprised all branch managers and credit officers from each commercial bank making a total of 177 respondents. A census approach was employed where all the units of observation were included in the study. Both primary and secondary data was utilized in the study where questionnaires collected primary data whereas a secondary data collection sheet was utilized to gather secondary data from printed sources. The data collected was analyzed through both descriptive and inferential statistics. In the study, the descriptive statistics comprised of means, average and standard deviation whereas the inferential statistics comprised of regression correlation analysis. Both MS Excel and SPSS Software v25 was utilized to generate the statistics. The results of the study were presented in form of tables and figures.
 Findings: The study established that credit terms, credit standards and collection policy affects financial performance of commercial banks in Eldoret to a positive and significant level. This depicted by beta values of 0.336, 0.404 and 0.304 and significance values of 0.000, 0.000 and 0.003 respectively.
 Unique contribution to theory, practice and policy: The results have the implications that the levels of financial performance of the commercial banks increases with the respective beta values following a unit increase in any of the independent variables. The study provided recommendations to the management of commercial banks operating in Eldoret to enhance the levels of practices surrounding credit terms, credit standards and collection policy since the practices translates into improved financial performance.

Behavioral Patterns That Influence the Financing Choice Models of Small Enterprises in Ecuador through Latent Class Analysis

The presence of small enterprises in developing countries makes new information on these enterprises substantially valuable for these countries. Governments have put forward numerous action plans and public policies to improve access to external credit. However, despite all technological advances, there are still situations linked to the theory of asymmetric information between lenders and borrowers, which influences the granting of financing. Under this premise, the present research uses latent classes to analyze the financing decision behavior patterns of 1033 business owners who faced the financing process and the constraints faced by lenders based on the asymmetric information theory. The results allowed the construction of a model that identified five profiles of trust in financial institutions among entrepreneurs that affected their financing decisions.

Analysis of Credit Management Techniques on the Financial Performance of Logistics Firms in Mombasa County Kenya

Financial performance depicts survival rate of any business enterprise. This rate for most firms internationally have been at a declining rate of 70% and 80% mostly in the sub- Saharan Africa. The Logistic firms in Kenya Mombasa County have been striving to survive reasons among other factors the deteriorating credit management techniques. The adverse performance is evidenced by the collapse and the closure of a number of logistics firms. The purpose of this research was to analyze the various credit management techniques and their influence on financial performance of logistics companies in Mombasa County. The specific objectives of the study were to analyze effect of appraisal process, credit risk control, collection policy and terms of credit on financial performance. The study was based on the following theories Agency Theory, Credit Risk Theory, Tax Theory of Credit, Portfolio Theory and Asymmetric information Theory to ascertain if their presumptions explains best the relationship between credit management techniques on financial performance of logistic firms. The study applied a descriptive research design and will target a population of 248 employees of logistics firms in Mombasa County registered under KIFWA and the sample size of 160 obtained through stratified sampling. The collection of data was done through primary data collection methods. Primary data was amassed through the administration of questionnaires to senior managers and officers in the finance department. Analysis of data was done through Statistical Packages for Social science (SPSS) representing descriptive statistics such as percentages, measures of central tendencies, variation measures and frequencies distribution. The interpretation was based on descriptive statistics and the measures of dispersion as well as inferential statistics were used Pilot test was carried out to ensure the accuracy and validity of the research tools Multi linear regression model was used to analyze effect of credit management techniques on financial performance. The research sought to analyze whether client appraisal process credit risk control collection policy and terms of credit has significant effects on financial performance of logistics firms in Mombasa County. The study further sought recommendation on how a robust credit control mechanism sound credit policies acceptable terms of credit and proper client appraisal process can be applied in credit management to enhance financial performance of logistics firms in Mombasa County. The beneficiaries of the study were the Logistics firms’ managers, Policy makers financial managers scholars and academicians.

Game analysis between startup and banks

Objective - Due to information asymmetry, banks cannot know all the information about a company during the financing process. Compared to large firms, start-ups face more difficulties in obtaining debt financing. In order to investigate how the game between start-ups and banks maximizes the benefits of debt financing, this study is based on the game process between start-ups and banks in complete and incomplete information markets. Methodology/Technique – The model assumes deterministic and relatively simple financial decisions, and game theory provides a way to gain insight into the mechanistic phenomenon of debt financing for start-ups by allowing for the inclusion of asymmetric information and strategic interactions in the analysis. Finding – The game process of debt financing for start-ups is studied from a game theoretical perspective to reveal the optimal decisions of both parties in the game process under the influence of information asymmetries, i.e., the basic laws governing the operation of debt financing for start-ups and the important criteria and procedures to ensure that debt financing works correctly. Novelty – The study shows that high-quality start-ups are more likely to receive bank loans than low-quality firms that are willing to pay high-interest rates. Type of Paper: Empirical JEL Classification: C7, C72. Keywords: Asymmetric Information theory; Game Theory; Debt Financing; Startup. Reference to this paper should be referred to as follows: Chengzhuo, Z; Azman, N.H.B.N. (2023). Game analysis between startup and banks, GATR-Global J. Bus. Soc. Sci. Review, 11(1), 01–08. https://doi.org/10.35609/gjbssr.2023.11.1(1)

Transparency on Corporate Governance and board of directors’ strategies

Based on agency and asymmetric information theories, the objective of this paper is to investigate whether the transparency on corporate governance is determined by strategies followed by the board of directors (liquidity, investment, capital structure, innovation and board composition impact on the corporate governance transparency). The study sample is composed by 826 observations from Latin American firms during the period 2004-2010 (128 unique firms). A two-way cluster standard errors and GMM methods have been adopted to perform the econometric analysis. Results suggest that corporate governance disclosure is attributable to changes on firm’s decisions made by the board with respect to financial aspects and innovation. However, the impact upon transparency of board composition with regards to female directors, independence and size of boards are attributable to industry and/or country effects. Although the main limitation of the study is focused on the period of analysis, the results provide important implications for the business sector, demonstrating that the board composition and the financial and innovation strategies adopted by the board encourage greater corporate transparency, thus increasing confidence in the markets.

Financial Risks and Financial Performance of Deposit-Taking Saccos in Mt. Kenya Region, Kenya

This study investigated the relationship between financial risks and the financial performance of deposit-taking SACCOs in the Mt. Kenya region. Specifically, the research sought to determine the effect of liquidity risk, credit risk, and operational risk on the financial performance of DT-SACCOs in the Mt. Kenya region. The research was embedded on the liquidity preference theory, asymmetric information theory, and dynamic capabilities theory. The descriptive research approach and target population of 56 DT-SACCOs with head offices in the region were espoused. Primary data was collected using structured questionnaires administered to heads of risk management and secondary data from financial statements were considered. The findings revealed that liquidity risk has a negative and insignificant effect (β=-0.093, p=0.317), credit risk has a positive and significant effect (β=0.159, p=0.023), and operational risk has a negative and insignificant effect on the financial performance (β=-0.140, p=0.463) of DT-SACCOs in the Mt. Kenya region. DT-SACCOs should strive to maintain optimal liquidity and tighten their credit risk and operational risk management practices.

Reflection on the Proliferation of the Fourth Industrial Revolution and Its Implications on Rural Areas in South Africa

The Fourth Industrial Revolution (4IR) is the fourth major industrial event since the 1980s. This event affected everyone and changed the world. It's a dilemma in a world where the wealthy are advancing but the poor are falling behind, especially in rural areas. In a third-world country with a rural majority, like South Africa, many black people will be disadvantaged by the 4IR. The 4IR has implications for people in rural areas. The rich make up the economy of the first world, whilst the third world is largely rural. Rural areas frequently lag in development. For instance, mobile phone coverage is patchy in many rural areas while being available in suburban and semi-suburban areas. The 4IR, which is technology-based, has socio-economic effects on those who live in rural areas. Rural communities are unable to function in a 4IR world, so they are not profiting from it. One of the implications of the 4IR is job loss and an increased unemployment rate due to a deficiency of necessary and potential technical skills. Thus, this article intends to explore the proliferation of the 4IR and its implications on rural areas in South Africa. To realize this, the authors employed a qualitative research approach in the form of a document review. The economics theory of Asymmetric Information (AI) was applied to support the argument and ground of this article. The AI theory was established by George Akerlof, Michael Spence, and Joseph Stiglitz in the 1970s. The AI theory enables those with information to make wise judgments while those without are at a constant disadvantage. In terms of participation, rural communities will be excluded, not through their fault, but due to technological advances. The study concludes by highlighting the implications of the 4IR in rural areas. One of the implications found in this article is increased inequality. Recommendation: To ensure that all citizens have access to information on an equal basis, it is necessary for the government and business to work toward restoring economic competitiveness and improving the quality of governance. The disclosure of information and increased openness on information can help to narrow the information gap that exists between those who are informed (urban) and those who are not informed (rural) residents.

Seed Capital and Performance: Reflections and Way Forward for Micro, Small and Medium Enterprises in Kenya

The study aimed at investigating the effect of seed capital on performance of micro, small and medium enterprises by reviewing related extant conceptual, theoretical and extant empirical literature. The study underpinning theories were; resource-based view, pecking order theory and theory of asymmetric information. The study employed literature review methodology. Based on the review of empirical research, it was concluded that seed capital contributes into developing a particular financing environment; where MSMEs can obtain angel capital from angel investors as well as equity capital from shareholders and crowdfunding, at the seed stage. More so, seed capital has an effect on performance of MSMEs supporting studies that found a positive effect. The seed capital, MSME uses to start a business, commonly comes from angel investors, owners’ equity and crowdfunding. The paper recommends that MSMEs; first, need to obtain financing, obtain shared expertise and technical expertise from angel investors, should guarantee complete control through use of equity capital to preserve control and independence as they provide for reinvesting part of their profits.

Influence of Credit Risk Identification on the Financial Performance of Commercial Banks in South Sudan

Banks rely on their profitability to mitigate the chaotic nature of the dynamic environment. High financial performance contributes to the financial institutions and market development of nations. Banks’ primary function is financial intermediation, but this function entails a risk of its own which is the risk of default. The purpose of this study was to determine the influence of credit risk identification on the financial performance of commercial banks in South Sudan. The research was anchored on the following three theories: Asymmetric information theory, portfolio theory, and credit risk theory. The study adopted an explanatory research design. The target population for the study was 711 employees of the 28Commercial Banks in South Sudan. The sample size was 195 respondents comprising Branch Managers, Credit Risk Managers, and Loan Officers of the Commercial Banks selected using the purposive sampling method since they are the ones exclusively dealing with lending matters daily. Primary data was used. Structured questionnaires were used, which included closed-ended to collect the primary data. The study conducted validity and reliability analysis and found a Cronbach of 0.708. Kaiser-Meyer-Olkin (KMO) Measured of Sampling Adequacy of credit risk identification was at 0.732 which was above 0.5. Data was analyzed using descriptive statistics involves the use of mean, standard deviations, percentages, and frequencies, while inferential statistics involves the use of correlation and multiple regression analysis through Statistical Package for Social Sciences (SPSS). The confidence level was 95% with an error margin of 5%. The findings showed that the combined effect of credit risk identification activities influenced the financial performance of commercial banks in South Sudan positively. The study concluded that credit risk identification activities significantly influence the financial performance of commercial banks. This study recommends commercial banks’ managers and loan officers focus on enhancing their credit risk identification practices by implementing comprehensive and effective risk assessment frameworks. This can include facilitating the understanding of credit risk identification based on the products the banks offer, conducting thorough credit assessments before offering credit, evaluating potential risks associated with new loan services or products before launching the product, and engaging external experts to ensure a holistic approach to risk identification.

Information quality and IPO underpricing: The role of underwriter pricing and allocation powers

In response to concerns over the use of book-building as the dominant price-setting mechanisms in IPOs, regulatory bodies in the emerging markets have implemented policies to restrict discretion exercised by underwriters. This study examines the regulatory policy effect on IPO underpricing, based on theories which explain information asymmetries among participants in the IPO process as the determinant of underpricing. Using the Korean IPO market with varying underwriter price-setting and allocation powers, I test for changes in the process by which information quality affects the initial return of IPOs when IPO reforms are withdrawn. The results suggest that when regulations limit underwriters' pricing and allocation powers, information is not impounded in the pricing of IPOs efficiently, but the inefficiency disappears when underwriters gain control over pricing and allotment of shares. Specifically, I find that IPOs are underpriced more for firms that produce poor quality accounting information, in accordance with asymmetric information theories, only when allocation powers are in the hands of underwriters. The results offer policy implications on regulating the IPO market in regard to the market price discovery process.

Financing SMEs and business development as new post Covid-19 economic recovery determinants

This study explores the relationship between the business environment, economic growth, and funding sources of Chinese small- and medium-sized enterprises (SMEs) to determine the relevance of the business environment for technological SMEs. The agency theory was used as a theoretical framework to describe how asymmetric information among SMEs and borrowers affects SMEs’ financial decisions as well as China’s investment climate and GDP growth. A binary logistic test was used to assess the financing of SMEs and business development for economic recovery after the pandemic in China. Data from the World Economic Forum and Development Bank were examined. According to the results, funding (e.g., formal and informal) under the banking structure and tax regulation may potentially boost standard credit choices and lower casual credit choices. Consequently, it has demonstrated a considerable impact on GDP growth for technologically small and medium-sized enterprises. This study is the first to examine the asymmetric information and institutional theory regarding funding a café. These findings are essential for business leaders and policymakers concerned with the financial health of small and medium-sized enterprises. Policy implications for important stakeholders are also included in this study.

The fit of dividends on investment decisions in the Vietnam capital market

This paper explores the effect of dividends on the investment decisions of listed firms in Vietnam from 2010 to 2020. The study employs quantitative research methods to demonstrate a significant effect of dividends on investment decisions. In addition, the phenomena involving endogeneity, and over-identifying restrictions are tested to ensure the reliability of the findings. The dividend-investment relationship is explained based on some theories, including the bird-in-the-hand theory, the asymmetric information theory, and the agency theory. In particular, the study focuses on an emerging market under transparent information issues, as in Vietnam.