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Journal of Asian Business and Economic Studies |
Vol. 28(4)
, December 2021, Page 281-302
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Characteristics of consulting firms associated with the diffusion of big data analytics |
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Babajide Oyewo & Oluwafunmilayo Ajibola & Mohammed Ajape |
Abstract
Purpose
This study investigates the characteristics of business and management consulting firms (firm size, international affiliation and scope of operation) affecting the adoption rate (i.e. recency of adopting big data analytics (BDA) as a new idea) and usage level of BDA. Ten critical areas of BDA application to business and management consulting were investigated, (1) Human Resource Management; (2) Risk Management; (3) Financial Advisory Services; (4) Innovation and Strategy; (5) Brand Building and Product Positioning; (6) Market Research/Diagnostic Studies; (7) Scenario-Based Planning/Business Simulation; (8) Information Technology; (9) Internal Control/Internal Audit; and (10) Taxation and Tax Management.
Design/methodology/approach
Survey data was obtained through a structured questionnaire from one hundred and eighteen (118) consultants in Nigeria from diverse consulting firm settings in terms of size, international affiliation and scope of operation (Big 4/non-Big 4 firms). Data was analyzed using descriptive statistics, cluster analysis, multivariate analysis of variance (MANOVA), multivariate discriminant analysis and multivariable logistic regression.
Findings
Whereas organizational characteristics such as firm size, international affiliation and scope of operation significantly determine the adoption rate of BDA, two attributes (international affiliation and scope of operation) significantly explain BDA usage level. Internationally affiliated consulting firms are more likely to record higher usage level of BDA than local firms. Also, the usage level of BDA by the Big 4 accounting/consulting firms is expected to be higher in comparison to non-Big 4 firms.
Practical implications
Contrary to common knowledge that firm size is positively associated with the adoption of an innovation, the study found no evidence to support this claim in respect of the diffusion of BDA. Overall, it appears that the scope of operation is the strongest organizational factor affecting the diffusion of BDA among consulting firms.
Originality/value
The study contributes to knowledge by exposing the factors promoting the uptake of BDA in a developing country. The originality of the current study stems from the consideration that it is the first, to the researchers' knowledge, to investigate the application of BDA by consulting firms in the Nigerian context. The study adds to literature on management accounting in the digital economy.
Keywords
Big data, Big data analytics, Business consulting, Management consulting, Management accounting in the digital economy, Organizational characteristics
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Improving the quality of the financial accounting information through strengthening of the financial autonomy at public organizations
2022, Journal of Asian Business and Economic Studies
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Abstract
Purpose
The purpose of this study is to examine the financial autonomy that affects the financial accounting information quality of public organizations. This study also tests the impact of the financial autonomy on support from leadership. How this impact has affected elements of accounting information systems such as hardware, software, communications technology and chief accountant to support providing the quality of the financial accounting information.
Design/methodology/approach
The research model is in the SEM form and measurement models are reflective scales so this study applies the PLS-SEM analysis technique on the Smart PLS 3.2.7 software to test the research hypotheses. Analytical data is collected through survey questionnaires with observed variables measured using the typical 7-point Likert scales. The result obtained after cleaning the data includes 164 Vietnamese public organizations with the different levels of the financial autonomy.
Findings
This research has three primary findings: firstly, FA has a positive direct effect on FAIQ and SL. Secondly, SL influences FAIQ through four mediate variables including AM, HW, SW and CN. Finally, SL also acts as a mediate variable in the relationship of FA and FAIQ.
Originality/value
This is one of the first empirical studies to examine the role of financial autonomy in leadership support to improve the quality of the accounting information in the public sector in the context of the Vietnamese government is promoting the financial autonomy of public organizations.
The implication of machine learning for financial solvency prediction: an empirical analysis on public listed companies of Bangladesh
2021, Journal of Asian Business and Economic Studies
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Abstract
Purpose
Financial health of a corporation is a great concern for every investor level and decision-makers. For many years, financial solvency prediction is a significant issue throughout academia, precisely in finance. This requirement leads this study to check whether machine learning can be implemented in financial solvency prediction.
Design/methodology/approach
This study analyzed 244 Dhaka stock exchange public-listed companies over the 2015–2019 period, and two subsets of data are also developed as training and testing datasets. For machine learning model building, samples are classified as secure, healthy and insolvent by the Altman Z-score. R statistical software is used to make predictive models of five classifiers and all model performances are measured with different performance metrics such as logarithmic loss (logLoss), area under the curve (AUC), precision recall AUC (prAUC), accuracy, kappa, sensitivity and specificity.
Findings
This study found that the artificial neural network classifier has 88% accuracy and sensitivity rate; also, AUC for this model is 96%. However, the ensemble classifier outperforms all other models by considering logLoss and other metrics.
Research limitations/implications
The major result of this study can be implicated to the financial institution for credit scoring, credit rating and loan classification, etc. And other companies can implement machine learning models to their enterprise resource planning software to trace their financial solvency.
Practical implications
Finally, a predictive application is developed through training a model with 1,200 observations and making it available for all rational and novice investors (Abdullah, 2020).
Originality/value
This study found that, with the best of author expertise, the author did not find any studies regarding machine learning research of financial solvency that examines a comparable number of a dataset, with all these models in Bangladesh.
Hedging, managerial ownership and firm value
2021, Journal of Asian Business and Economic Studies
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Abstract
Purpose
This study investigates the impact of derivatives as risk management strategy on the value of Malaysian firms. This study also examines the interaction effect between derivatives and managerial ownership on firm value.
Design/methodology/approach
The study examines 200 nonfinancial firms engaged in derivatives for the period 2012–2017 using the generalized method of moments (GMM) to establish the influence of derivatives and managerial ownership on firm value. The study refers to two related theories (hedging theory and managerial aversion theory) to explain its findings. Firm value is measured using Tobin's Q with return on assets (ROA) and return on equity (ROE) as robustness checks.
Findings
The study found evidence on the positive influence of derivatives on firm value as proposed by the hedging theory. However, the study concludes that managers less hedge when they owned more shares based on the negative interaction between derivatives and managerial ownership on firm value. Hedging decision among managers in Malaysian firms therefore does not subscribe to the managerial aversion theory.
Research limitations/implications
This study focuses on the derivatives (foreign currency derivatives, interest rate derivatives and commodity derivatives) and managerial ownership that is deemed relevant and important to the Malaysian firms. Other forms of ownership such as state-/foreign owned and institutional ownership are not covered in this study.
Practical implications
This study has important implications to managers and investors. First is on the importance of risk management using derivatives to increase firm value, second, the influence of derivatives and managerial ownership on firm value and finally, the quality reporting on derivatives exposure by firms in line with the required accounting standard.
Originality/value
There is limited empirical evidence on the impact of derivatives on firm value as well as the influence of managerial ownership on hedging decisions of Malaysian firms. This study analyzes the influence of derivatives on firm value during the period in which reporting on derivatives in financial reports is made mandatory by the Malaysian regulator, hence avoiding data inaccuracy unlike the previous studies on Malaysia. This study therefore fills the gap in the literature in relation to the risk management strategies using derivatives in Malaysia.
Corporate governance and remuneration: a bibliometric analysis
2021, Journal of Asian Business and Economic Studies
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Abstract
Purpose
This study aims to pinpoint gaps in the literature on corporate governance and remuneration by producing a comprehensive bibliometric review for the period 1990–2020.
Design/methodology/approach
Bibliometric analysis is the quantitative study of the bibliographic material in a specific research field. It allows an analyst to classify that material by paper, journal, author, indexation, institution or country, among other possibilities. This study reviews a total of 298 Web of Science–indexed journal articles on corporate governance and top-management remuneration schemes.
Findings
The authors find five distinct research strands: (1) firm performance and remuneration of top management, (2) the remuneration and independence of boards of directors and the efficiency of boards of directors as a governance system, (3) outside-director remuneration and the efficiency of outside directors as a monitoring system, (4) director remuneration and the corporate governance of companies and (5) the role of ownership structure and top managers' compensation schemes as corporate-governance tools. The authors identify gaps in the literature and avenues for future research for each of these strands.
Practical implications
The authors’ findings have implications for board diversity (e.g. gender diversity), remuneration policy for top-level managers and governance issues (independent directors, separation of ownership with control). This study is the only one to summarize the key topics on which top research has been focused and can be broadly used for corporate governance management perspective.
Originality/value
This paper provides an overview of how the literature on corporate governance and remuneration has developed and a synopsis of the most influential and most productive authors, countries and journal sources. It creates an opportunity for other researchers to focus on this area. This study will also serve as a foundation for future meta-analyses.
Supply chain management: Solutions to improving the competitive advantage of small- and medium-sized enterprises: The case of Danang City
2020, Journal of Asian Business and Economic Studies
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Abstract
Supply chain management (SCM) has been proven to improve the competitive advantage, and increase the effectiveness of operation in small and medium sized enterprises (SMEs) (Chin et al., 2012). This study investigates the measurement of SCM practice in Vietnam with the sample of 148 SMEs in Danang. The research findings exhibit the humble degree of SCM practices within these firms. These activities are in the primary form of SCM practice as supplier’s quality management, customer interaction, and customer satisfaction measurement. The findings also indicate the limitations in practicing SCM in Danang SMEs, and propose implications in policy adjustment to promote SCM practices and advance the competitive advantages of SMEs.
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