nep-sea New Economics Papers
on South East Asia
Issue of 2019‒10‒21
sixteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Vietnam's Monetary Policy during the AFC By Kirrane, Chris
  2. The Impact of the 2007 Global Financial Crisis on IPO Performance in Asian-Pacific Emerging Markets By Giannopoulos, George; Degiannakis, Stavros; Holt, Andrew; Pongpoonsuksri, Teerapon
  3. Digitalization and Firm Performance in Thailand: Evidence from Firm Dividend Payout Policy By Ek-anong Tangrukwaraskul; Kiriya Kulchanarat
  4. Fiscal decentralization and electoral participation: Analyzing districts in Indonesia By Farah, Alfa
  5. Thailand; Financial System Stability Assessment By International Monetary Fund
  6. Korelasi Kebijakan Dividen, Ukuran Perusahaan dan Profitabilitas Terhadap Kebijakan Hutang pada Perusahaan Manufaktur By Zefriyenni, Zefriyenni; Sari, Vivi Nila; Utami, Selvida
  7. CULTURAL INTELLIGENCE OF HEALTHCARE STAFF: A VITAL VALUE OF SERVICE OPERATORS By Sirijin Wongjarupun; Korakot Wichitpong; Preeyanuch Apibunyopas; Kanya Napapongsa
  8. Pengaruh Struktur Modal Berdasarkan Profitabilitas, Pertumbuhan Aset, dan Ukuran Perusahaan pada Perusahaan Manufaktur By Dwijayanti, Nita; Hady, Hamdy; Elfiswandi, Elfiswandi
  9. Thailand; 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Thailand By International Monetary Fund
  10. Determinants of Capital Structure: An Empirical Analysis of Listed Companies in Thailand Stock Exchange SET 100 Index By Apichat Pongsupatt; Tharinee Pongsupatt
  11. Education, fertility and childlessness in Indonesia By Marine de Talancé
  12. Is environmental goods trade beneficial for the environmental performance of the concerned countries? Vol: By Huong Thi Thu Tran; Kaliappa Kalirajan
  13. Dutch Shell Companies and International Tax Planning By Arjan Lejour; Jan Möhlmann; Maarten van 't Riet; Thijs Benschop
  14. The Effects of the Affordable Care Act Medicaid Expansion on Subjective Well-being By Kim, Seonghoon; Koh, Kanghyock
  15. Fundamental Analysis in China: An Empirical Study of the Relationship between Financial Ratios and Stock Prices By Lijuan Ma; Marcel Ausloos; Christophe Schinckus; H. L. Felicia Chong
  16. L'économie solidaire sous le prisme du genre : une analyse critique et possibiliste By Isabelle Hillenkamp; Isabelle Guérin; Christine Verschuur

  1. By: Kirrane, Chris
    Abstract: This paper examines Vietnam's exchange rate policy during the Asian financial crisis. It concludes that the policy of anchoring the Vietnamese Dong to the US dollar and controlled floating used by the Vietnamese monetary authorities since 1992, led to stabilisation of the exchange rate and controlled inflation during a period of rapid growth. It concludes that the risk of a financial crisis, experienced by other Southeast Asian countries was low, even if the country remained vulnerable to a currency crisis because of its current account deficit.
    Keywords: Asian Financial Crisis
    JEL: F3 F31
    Date: 2018–11–01
  2. By: Giannopoulos, George; Degiannakis, Stavros; Holt, Andrew; Pongpoonsuksri, Teerapon
    Abstract: This paper assesses the comparative impact of the 2007 global financial crisis on the short and long-term performance of initial public offerings (IPOs) in the Asian-Pacific emerging markets of Thailand, China, South Korea, and Malaysia. Our results indicate that the short-term performance or underpricing of Thai IPOs increased from 19% to 44% between the pre-crisis and post-crisis periods. IPOs in each of the three other emerging markets experienced a reduction in underpricing after the financial crisis. While our results are consistent with previous IPO research, the degree of underpricing in each emerging market exceeded the levels found in studies of IPOs in developed countries. In terms of the long-term performance of IPOs, our results suggest that IPOs in Thailand, China, and South Korea performed better in the post-crisis period, while Malaysian IPOs performed worse. Our overall findings suggest that the 2007 financial crisis affected IPO performance and economic growth in each of the markets studied.
    Keywords: Benchmark-Adjusted Returns, Emerging Markets, Financial Crisis, IPO, Performance, Underpricing
    JEL: F30 G15 G20 G32
    Date: 2018
  3. By: Ek-anong Tangrukwaraskul (Kasetsart University); Kiriya Kulchanarat (Kasetsart University)
    Abstract: Digitalization has continuously transformed economy in the global landscape, including developing countries in ASEAN region. Accordingly, Thailand has established a framework for digital economy development alongside with the ?Thailand 4.0? policy to enhance the country competitiveness. As part of this initiative, healthcare services are profoundly promoted and aimed to be Asia?s capital of health and wellness, as well as a number of digital projects are initiated to drive forward this digitalization. Consequently, businesses in both ICT and healthcare sector should be beneficial from this policy, and should reveal in their financial performance. In corporate finance, firm?s dividend decision could provide useful information about firm performance, and might be taken into consideration when making their investment decision. This paper examines the relationship between dividend per share and financial performance using panel data from Thailand listed firms in ICT and healthcare sectors during the period 2009-2018. In order to investigate such relationship, return on asset (ROA) is a proxy for firm financial performance while firm size, asset tangibility and leverage are treated as controlled variables. Regression results confirms the differences of such relationship between the two sectors. In ICT sector, both firm size and dividend per share shows positive and significant relationship to the firm performance, which provide evidence in support of both Signaling and Bird-in-hand hypotheses of dividend policy theory. Contrary, there is no clear evidence from firms in the Healthcare sector, whose financial performance only depends significantly on asset tangibility but not on dividend.
    Keywords: Digitalization, Dividend Policy, Firm Performance, Signaling Hypothesis, Thailand Stock Exchange
    JEL: F39 O39
    Date: 2019–10
  4. By: Farah, Alfa
    Abstract: Many countries have adopted decentralization policies in order to strengthen democratic governance. Nevertheless, empirical literature on whether decentralization actually strengthens democratic governance is relatively limited when compared to empirical literature on the impact of decentralization on a wide array of fiscal or economic variables. Therefore, this paper empirically explores the effect of fiscal decentralization on democratic governance, particularly by highlighting one aspect of democratic governance, namely participation in local elections. Upon analyzing data from districts across Indonesia using the within-between specification, the empirical findings generally suggest that participation in district mayoral elections might not necessarily be driven by the increased autonomy that district have, but rather by some adverse consequences of decentralization such as capture by local elites. In addition, the analysis shows that when a district government gains fiscal power, this might not necessarily encourage electoral participation when the district's budget is mostly allocated to spending that does not benefit the public at large.
    Keywords: fiscal decentralization,fiscal autonomy,voter turnout,local election,the within-between specification
    JEL: H71 H72 H77 D72
    Date: 2019
  5. By: International Monetary Fund
    Abstract: Banks represent a sizable share of the financial sector in Thailand, but other deposit-taking institutions and NBFIs have grown significantly in the last decade. While assets of banks represented 46 percent of total financial assets at end-2018, the government-owned SFIs and TCCs now play a key role in providing credit to households. Assets of the insurance and mutual fund sectors have doubled as a share of GDP over the last decade, and capital markets are largely on par with regional peers. Financial vulnerabilities appear to be contained, but household indebtedness is relatively high and there are signs of weaknesses in some corporates and SMEs. Weaker-than-expected growth in China and advanced economies, sharp rise in risk premia, and entrenched low inflation would adversely impact the financial system. Despite these risks, the banking sector is resilient to severe shocks. Stress tests results and sensitivity analysis indicate that the largest banks can withstand a shock broadly as severe as the Asian financial crisis. While data is limited, deposit-taking SFIs appear to be vulnerable to asset concentration and interest rate risk. Systemic and contagion risks stemming from interlinkages across banks and nonbanks are limited. Risk analysis could benefit from data improvements, including on liquidity and SFIs, and from the development of tools to assess concentration risk at an entity level.
    Date: 2019–10–07
  6. By: Zefriyenni, Zefriyenni; Sari, Vivi Nila; Utami, Selvida
    Abstract: This study aims to analyze how much the correlation between dividend policy, company size, and profitability is partially and simultaneously on debt policy. The data processed amounted to 161 companies. Data collection techniques through documentation study with secondary data accessed through the official website of the Indonesia Stock Exchange (IDX). The sampling technique uses purposive sampling method. The analytical method used is multiple linear regression. The results of this study indicate that dividend policy is not partially correlated significantly to debt policy, while company size and profitability are significantly correlated to debt policy. The coefficient of determination shows a value of 0.748 with a value of 74.8%. While the remaining 25.2% by factors in external variables.
    Keywords: Correlation, Dividend Policy, Firm Size, Profitability, Debt Policy.
    JEL: G0
    Date: 2019–10–14
  7. By: Sirijin Wongjarupun (Kasetsart University); Korakot Wichitpong (Kasetsart University); Preeyanuch Apibunyopas (Kasetsart University); Kanya Napapongsa (Suan Sunandha Rajabhat University)
    Abstract: The diversity of peoples and cultures in Thailand has increased immensely. This challenges healthcare professionals, especially nurses, to recognize the beliefs and actions of patients from different national origins, ages, religious affiliations, languages, genders, sexual orientations, socioeconomic and occupational statuses, and geographical locations, among others. Not only do nurses deliver healthcare service closely to patients, but they also have to possess knowledge, attitudes, and skills that make diverse patients feel comfortable and at ease with them. Moreover, nurses have to maintain good communication with their patients for better healthcare service quality, ultimately, satisfying patients. For this reason, the cultural intelligence (CQ) is a significant capability of nurses. CQ determines how nurses are able to interact in service healthcare encounter with patients from various backgrounds. The objective of this study is to investigate nurses? CQ. The target respondents are nurses in both private and public hospitals in Bangkok, Thailand, because they have much more opportunities to interact with multifarious patients. Nurses will be measured CQ according to Ang et al.?s model (2007) including four dimensions, namely, metacognitive, cognitive, motivational, and behavioral. Confirmatory factor analysis will be utilized for data analysis.The expected result is that nurses possess all four CQ dimensions with different weights. The implication of this study is to gain a better understanding of CQ of nurses in Thai context for healthcare improvement which leads to enhance patients? satisfaction.
    Keywords: Cultural Intelligence, Service Operators
    JEL: L84
    Date: 2019–10
  8. By: Dwijayanti, Nita; Hady, Hamdy; Elfiswandi, Elfiswandi
    Abstract: This study aims to measure the level of influence of profitability, asset growth, and company size on changes in capital structure in manufacturing companies. The method used for sample determination is purposive sampling with analytical methods using descriptive statistics, classic assumption tests and multiple panel data regression. The data tested in the study were 112 companies in the basic and chemical industry sectors, consumer goods, and the textile and garment sub-sector listed on the Indonesia Stock Exchange (IDX). The results showed that partially profitability had a negative and significant effect on capital structure, while asset growth had a positive and significant effect. Then the company must be able to choose the right combination of financing sources in order to be able to produce optimal profits.
    Keywords: Profitability, Asset Growth, Firm Size, Capital Structure, Manufacturing.
    JEL: G00
    Date: 2019–10–14
  9. By: International Monetary Fund
    Abstract: Thailand’s robust policy framework and ample buffers continue to underpin its resilience to external headwinds. The authorities have taken measures to strengthen medium-term fiscal management and financial stability. The recent Financial Sector Assessment Program (FSAP) concluded that financial vulnerabilities appear to be contained and that the banking sector is resilient to severe shocks. At the same time, long-standing domestic and external imbalances persist, leaving the economy vulnerable to the global slowdown and trade tensions.
    Date: 2019–10–07
  10. By: Apichat Pongsupatt (Faculty of Business Administration, Kasetsart University); Tharinee Pongsupatt (Faculty of Business Administration, Kasetsart University)
    Abstract: The main purpose of this study is to investigate some financial indicators that affect the debt ratio in Thailand?s capital market. Two competing theories that explicate the capital structure are old-fashioned pecking order and static trade-off model. From existing literature reviews, we select seven traditional factors: profitability, asset structure, size, liquidity, non-debt tax shields, dividend policy and growth as explanatory variables. While long-term debt and total debt are used as proxies for dependent variables. This study uses secondary data collected from annual financial statements of companies in SET 100 index exclude financial business sector. All firms rank highest market capitalization and top trading liquidity in Thailand Stock Exchange for a period of 10 years during 2009-2018. After examine the data, only 760 samples are qualified under criteria. Two panel multiple regression models are implemented for statistic testing at the significant level 0.05.The results for model 1 (Long term debt) show positive and statistical significant effect of asset structure, size, liquidity and growth. While other three factors comprising profitability, non-debt tax shield and dividend policy indicate negative statistical relationships. The results for model 2 (Total debt) show positive and statistical significant effect of asset structure and growth. Whereas, two factors including profitability and liquidity display negative statistical correlation. The results of the two models are consistent with the Pecking Order theory for profitability and growth. High growth firms have higher need for funds then expect to borrow more. While asset structure is consistent with trade-off theory which hold that there should be a positive relationship between fixed assets and debt since fixed assets can serve as collateral. The explanatory variables which have the highest impact on capital structure choices for long term debt and total debt are non-debt tax shield and profitability respectively. Other independent variables such as product uniqueness, risk and macroeconomic indicators are subject to future research.
    Keywords: Capital Structure; Thailand SET 100 Index; Pecking Order; Static trade-off; Leverage
    JEL: G30 L25 P10
    Date: 2019–10
  11. By: Marine de Talancé (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, LEDA-DIAL - Développement, Institutions et Modialisation - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)
    Date: 2019–10–10
  12. By: Huong Thi Thu Tran (Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia); Kaliappa Kalirajan
    Abstract: This paper examines the impacts of environmental goods (EGs) trade on environmental performance of the concerned countries. The EGs have been disaggregated into renewable energy, environmental monitoring analysis and assessment equipment, and environmental protection and environmental preferable products. Environmental performance has been classified into environmental health and ecosystem vitality. The empirical analysis is carried out using data from the Asia Pacific Economic Cooperation (APEC) member countries covering the period of 2007-2014. The empirical results suggest positive impacts of EGs exports and imports on environmental performance. While exports of environmental goods have significant beneficial impacts on environmental health measure, the impact on ecosystem vitality measure is not impressive. These results support the reduction in barriers on EGs trade, which has policy implications towards increasing the technology, awareness, and environmental-regulation effects, and minimizing the scale effect of EGs exports.
    JEL: Q56 F14 F15
    Date: 2018–07
  13. By: Arjan Lejour (CPB Netherlands Bureau for Economic Policy Analysis); Jan Möhlmann (CPB Netherlands Bureau for Economic Policy Analysis); Maarten van 't Riet (CPB Netherlands Bureau for Economic Policy Analysis); Thijs Benschop (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: This paper uses the financial statements of special purpose entities (SPEs) for explaining the origin and destination of dividend, interest, and royalty flows passing the Netherlands. We find that Bermuda is the most important destination for royalty flows. These flows come from Ireland, Singapore and the United States. For dividend and interest payments the geographical pattern is more widespread. We find a substantial tax reduction for royalties by using Dutch SPEs compared to a direct flow between the origin and destination country. However, we cannot find such tax savings for dividends and interest with an approximation based on statutory tax rates. This Discussion Paper reports research on the financial flows already presented in the CPB Policy Brief of 24 January 2019: Conduit country the Netherlands in the spotlight .
    JEL: G32 H25 H32
    Date: 2019–06
  14. By: Kim, Seonghoon (Singapore Management University); Koh, Kanghyock (Korea University)
    Abstract: This study analyzes the effects of the 2014 Affordable Care Act (ACA) Medicaid expansion on the subjective well-being of individuals in the United States. Using data from the Panel Study of Income Dynamics, we find that the expansion has significantly improved the overall life satisfaction of low-income non-elderly adults. Various sensitivity checks and falsification tests confirm the internal validity. Our findings imply that, without considering psychological benefits, the actual benefits of the ACA Medicaid expansion may be underemphasized.
    Keywords: Affordable Care Act Medicaid Expansion, health insurance, subjective well-being, life satisfaction, happiness
    JEL: I13 I18 I31
    Date: 2019–09
  15. By: Lijuan Ma; Marcel Ausloos; Christophe Schinckus; H. L. Felicia Chong
    Abstract: The informational context is regularly questioned in a transitional economic regime like the one implemented in China or Vietnam. This article investigates this issue and the predictive power of fundamental analysis in such context and more precisely in a Chinese context with an analysis of 3 different industries (media, power, and steel). Through 3 different kinds of correlation, we examine 25 financial determinants for 60 Chinese listed companies between 2011 and 2015. Our results show that fundamental analysis can effectively be used as an investment tool in transitional economic context. Contrasting with the EMH for which the accounting information is instantaneously integrated into the financial information (stock prices), our study suggests that these two levels of information are not synchronized in China opening therefore a door for a fundamental analysis based prediction. Furthermore, our results also indicate that accounting information illustrates quite well the economic reality since financial reports in each industry can disclose a part of stock value information in line with the economic situation of the industry under consideration.
    Date: 2019–10
  16. By: Isabelle Hillenkamp (CESSMA UMRD 245 - Centre d'études en sciences sociales sur les mondes africains, américains et asiatiques - IRD - Institut de Recherche pour le Développement - Inalco - Institut National des Langues et Civilisations Orientales - UPD7 - Université Paris Diderot - Paris 7, IRD - Institut de Recherche pour le Développement); Isabelle Guérin (IRD - Institut de Recherche pour le Développement, CESSMA UMRD 245 - Centre d'études en sciences sociales sur les mondes africains, américains et asiatiques - IRD - Institut de Recherche pour le Développement - Inalco - Institut National des Langues et Civilisations Orientales - UPD7 - Université Paris Diderot - Paris 7); Christine Verschuur (IHEID - Institut de hautes études internationales et du développement - University of Geneva [Switzerland])
    Abstract: Cet article propose d'étudier l'économie solidaire sous le prisme du genre à partir d'un double regard, critique et possibiliste. Ce double regard, inspiré à la fois de l'économie substantive polanyienne et des recherches féministes, éclaire la manière dont les pratiques d'économie solidaire renouvellent l'économique et le politique, compris ici à la fois comme catégories d'action et de pensée. Il met aussi en lumière les chemins multiples et sinueux de l'émancipation, fruit d'un entremêlement entre principes d'échange dont l'équilibre est en renouvellement permanent.
    Keywords: genre,pouvoir,économie solidaire,Polanyi,reproduction
    Date: 2019

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