• The Journal of Asian Finance, Economics and Business
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• 제6권4호
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• pp.91-98
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• 2019

Dividend policy is an important business decision and is considered a channel to communicate a firm's performance to shareholders. Given the empirical findings that earnings quality significantly affects financial analysts' forecasting activities, it is predicted that higher earnings quality would positively influence forecast accuracy. Specifically, it is expected that financial analysts would forecast dividends more accurately for firms with higher earning quality. Unlike the research on financial analysts' earnings forecasts was heavily conducted, there is little study about financial analysts' dividend forecasts. This paper examines the effect of earnings quality on financial analysts' dividend forecast accuracy. We use a sample of South Korean firms for the period of 2011-2015 for multivariate regression. Earnings quality is measured by accruals quality and performance-adjusted discretionary accruals followed by prior studies. We first compare the accuracy between dividend forecasts and earnings forecasts using t-test and Wilcoxon singed-rank test. It is confirmed that financial analysts' dividend forecasts are more accurate than earnings forecasts in Korea. We find that financial analysts' dividend forecasts are more accurate for firms with higher earnings quality. We also find that the result is still valid after controlling for the accuracy of financial analysts' earnings forecasts. This confirms that earnings quality positively affects financial analysts' dividend forecasts.

• The Journal of Asian Finance, Economics and Business
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• 제6권4호
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• pp.75-81
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• 2019

The paper aims to investigate the linkage among prior financial performance, organizational reputation and earnings quality. Firstly, it examines the influence of prior financial performance on organizational reputation and on earnings quality. Secondly, this research explores the moderating role that prior financial performance plays in the causal relationship from organizational reputation to earnings quality. Thirdly, the mediating role of organizational reputation in the effect of prior financial performance on earnings quality is analyzed. The empirical findings show that, prior financial performance positively affects both earnings quality and organizational reputation that in turn partly mediates the causal connection from prior financial performance to earnings quality; whereas prior financial performance imposes a positive moderation in the influence of organizational reputation on earnings quality. This research is expected to provide scholars and practitioners with a thorough understanding of the complex link among prior financial performance, organizational reputation and earnings quality. That helps them to deliver good decisions on the investment of suitable resources in maintaining and enhancing their organizational reputation, which assures a higher quality of reported earnings that in turn improves involved stakeholders' confidence in their firm. This likely leads the firms to gain better performance in the future.

• The Journal of Asian Finance, Economics and Business
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• 제9권1호
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• pp.345-352
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• 2022

This study examines the impact of female representation on board of directors and audit committees on financial reporting quality, which also discusses the moderating role of family ownership in female representation on boards of directors and audit committees and financial reporting quality. The unbalanced panel is made up of 271 non-financial companies listed on the Pakistan Stock Exchange (PSX) from 2008 to 2019.The findings reveal that female representation on the board of directors has a large and negative impact on financial reporting, but female representation on the audit committee has a significant positive impact on financial reporting quality. Furthermore, the results reveal that family ownership has a negative impact on the relationship between female presence on boards of directors and financial reporting quality. Furthermore, the findings show that family ownership reduces the impact of female involvement in audit committees on the quality of financial reporting. However, family ownership has no direct impact on financial reporting quality.Our findings suggest that selecting females to serve on boards of directors and audit committees should be based on specific criteria (e.g., monitoring abilities, business competence, knowledge, and experience) rather than on family relationships.

• The Journal of Asian Finance, Economics and Business
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• 제7권12호
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• pp.1185-1194
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• 2020

This study aims to test Voluntary Disclosure, Quality of Financial Reporting and Information Asymmetry as Moderation Variables. The Voluntary Disclosure variable is calculated using the Index Disclosure. This research uses quantitative methods and uses partial least square with EViews data analysis. The research sample consisted of 225 manufacturing companies listed on the Indonesian stock exchange for the period 2016-2018. The results of the study state that voluntary disclosure has a positive and significant effect on the quality of financial reporting through asymmetric information. The relationship between voluntary disclosure and asymmetric information has a negative effect on the quality of financial reporting, states that the disclosure of voluntary reports to companies can prevent information asymmetry, as well as the relationship of voluntary disclosure to information asymmetry states that companies that make voluntary disclosure will increase the interest of investors and other stakeholders. The quality of financial reporting states that if there is information asymmetry, the quality of financial reporting will also decline. The low value of relevance will affect the level of large or small information gaps between management and investors. The quality of financial reporting with increased relevance means that asymmetric information will have a negative impact on financial reporting.

• Asian Journal of Business Environment
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• 제9권1호
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• pp.13-20
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• 2019

Purpose - The purpose of this paper is to find out the determinants of the quality of financial information in the financial environment of the cement companies of Bangladesh. Research design, data and methodology - This study considers a total of fifty-eight firm years as the sample from the seven listed cement companies of Bangladesh during the period of 2007 to 2015. This study applies the multivariate regression analysis including the pooled OLS, panel and controlling time. Results - This study finds that profitability and external financing are the two major explanatory variables in determining the quality of financial information. This study also finds that firm size and accrual quality don't have any significant influence on quality of financial information. Conclusion - This study observed that profitability of this sector which is much volatile and prone to be manipulated. Thus, this paper suggests that higher profitability needs more scrutiny while assessing quality of financial information. Finally, this study provides some indications for future research such as considering the listed firms of other sectors of Bangladesh or cross country comparison in different country setting.

• 산업경영시스템학회지
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• 제32권4호
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• pp.235-240
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• 2009

This study examines the competitive strategy of service quality in financial industry. Service quality has been suggested as the approach for service organizations to be service and customer oriented. Recently, the issue of internal service quality has been one of topics widely discussed in financial industry. The purpose of the current study is to examine the internal service quality which is believed to increase such organizational performances as customer satisfaction, retention and revenue. Internal service quality index is used to measure service quality in service industry. In this paper, the methodology for measuring the degree of service quality which has been adopted in service quality research area was used. This paper proposes internal service quality index in financial industry. In this paper, we show the application method of internal service quality index.

• 한국정보시스템학회지:정보시스템연구
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• 제20권4호
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• pp.103-117
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• 2011

The rapid pace of adoption of mobile handsets has created new mobile financial services. The success of mobile financial information systems will depend on consumer self-efficacy and a sound business model. Self-efficacy has been described as the belief that one is capable of performing in a certain manner to attain certain goals. This is directly related to consumer behavior, but it also affects consumer behaviors indirectly through its impact on goals. And self-efficacy influences the challenges that people take on as well as how high they set their goals. The objective of the study to investigates the effect of self-efficacy on mobile financial information systems. In order to do that, self-efficacy, mobile financial information systems reliability, mobile financial information systems use intensity are conceptualized by survey questionnaire. Our empirical analysis based on 462 survey data shows that self-efficacy effects on mobile financial information systems quality. In addition we also found that self-efficacy effects on mobile financial systems reliability and usage intention. And we found that mobile financial information systems reliability effects on mobile financial systems use intention. And we also found that mobile financial information systems usage intention effects mobile financial systems quality.

• 한국품질경영학회:학술대회논문집
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• 한국품질경영학회 2009년도 추계학술대회
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• pp.109-114
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• 2009

Recently, there has been growing interest in the financial and economic effectiveness of service quality and customer satisfaction. It means that the final goal of customer satisfaction is the maximization with firms' financial performance, enterprise could survive through the creation of continuous financial performance. Companies are working in various ways to identify the direct relationship of service quality and customer satisfaction with financial and economic effectiveness in order to justify and validate customer satisfaction management. In this study, the influence of customer satisfaction on the financial performance is examined. Also, we have analyzed customer satisfaction by comparing financial outcome of each industry Customer satisfaction index, the key non-financial performance measure has significant association with firms' financial performance index. Moreover, high customer satisfaction has a competitive advantage, so it can be the key success factor of firm's financial performance improvement.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.11-19
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• 2021

The paper examines the nexus between economic globalization, financial development and institutional reform in India and Sri Lanka during the period 1990-2017. Using the panel ARDL method, the study finds the long-run relationship between financial development, economic globalization, and institutional reforms. From the short-run equation, the study finds the negative and statistically significant impact of economic globalization on financial development in India whereas Sri Lanka has a positive impact of institutional quality on financial development. Then, the study finds no short-run causality between financial development, economic globalization and institutional reforms. However, the study finds bi-direction strong causality between economic globalization and financial development. Further, the study finds uni-directional strong causality from institutional quality to financial development and economic globalization. Moreover, there is an existence of long-run causality between financial development, economic globalization and institutional quality. For the robustness of the results, the study considers the financial market as a proxy for financial development. Then, the study applies the panel ARDL test and find the consistency in the results. The policymakers in India and Sri Lanka should focus on institutional reforms so that it can reap the benefit of economic globalization. In turn, the quality of institutional reforms can thereby lead to financial development.

• 한국신뢰성학회지:신뢰성응용연구
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• 제16권2호
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• pp.78-89
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• 2016

Purpose: In this paper, we investigate whether the endeavors for Six Sigma quality management by a firm have positive effects on its financial performance and the length of Six Sigma implemented period affects its financial status. We find a relationship between Six Sigma implemented period and several financial performance index using a smoothing spline function. Methods: A smoothing spline function is used in order to analyze the relationship between efforts for quality management and financial performance. Specifically, the return on assets, return on equity, sales cost and business fee are investigated as dependent variables and the efforts for quality management as independent variable. Results: As a result of the analysis, the indication is that companies that put effects into the Six Sigma quality management have a positive result in its financial status. In detail, the efforts for Six Sigma quality management have positive effects on total asset turnover ratio and Six Sigma implemented period on net income to net sales ratio. Additionally, companies with longer (shorter) period of Six Sigma program have more (less) improvement in its financial status. Conclusion: It can be concluded that the company's efforts for quality management positively influence financial performance.