International Journal of Finance, Economics and Business
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Remuneration Committee Characteristics and Excess CEO Pay: Evidence from Malaysia
Full text linkThis study examines the monitoring effectiveness of the remuneration committee within corporate boards. Utilizing a dataset of Malaysian listed firms from 2017 to 2021, the findings reveal that an index combining demographic and expertise characteristics (gender, age, ethnicity, educational background, financial expertise, and multiple directorships) better captures remuneration committee diversity than any individual facet. This diversity is associated with a reduction in the Type I agency problem. In contrast, the findings indicate that most independent remuneration committees are ineffective in reducing excess chief executive officer (CEO) pay, potentially exacerbating Type I agency issues. This study offers valuable practical implications for regulators, particularly the Securities Commission Malaysia, as it continues to advance corporate governance reforms. The study also motivates listed companies to adopt best practices in board composition and oversight
Performance Comparison of Blockchain Platforms for Modeling Financial Transactions: A Case Study of Ethereum and Hyperledger Fabric
Full text linkBlockchain platform performance is critically important for financial transaction applications. This article presents a case study comparing Ethereum, a public blockchain, with Hyperledger Fabric, a permissioned blockchain, for modeling financial transactions. Key performance metrics evaluated include throughput, latency, transaction cost, and finality. Our findings show that the Ethereum network achieved approximately 15 transactions per second (TPS) with a latency of ~12 seconds and incurred transaction fees of a few U.S. dollars. In contrast, Hyperledger Fabric sustained ~2000 TPS with sub-second latency and negligible cost. Fabric’s deterministic consensus also provides near-instant finality (~1–2 s), contrasting with Ethereum’s probabilistic finality, which requires ~1 minute. The detailed empirical results in Figures and summary Tables comparing core metrics reveal that Hyperledger Fabric offers superior throughput and efficiency for enterprise financial scenarios, while Ethereum’s performance is constrained by its decentralized consensus overhead. All measurements are based on an internal case study deployment without simulation. These insights inform platform selection for financial applications requiring high transaction volume and low latency
Leveraging Digital Marketing: How Tulungagung Bamboo Crafts Gain a Competitive Edge
Full text linkSmall and Medium Enterprises (SMEs), including the bamboo craft sector in Tulungagung, Indonesia, are vital to the national economy yet face significant challenges in leveraging digitalization for growth. The central issue is understanding how digital tools translate into tangible business performance. This study addresses a critical research gap by investigating the underexplored mediating role of competitive advantage in the relationship between digital marketing and marketing performance within a traditional craft industry. The research objective was to empirically test these relationships. Using a quantitative method, data were collected via a survey from 62 bamboo craft businesses (selected via purposive sampling from a population of 105) and analyzed using Structural Equation Modeling (SEM) with Smart-PLS. The results reveal that digital marketing has a significant direct positive effect on both competitive advantage and marketing performance. However, competitive advantage itself does not directly improve marketing performance, nor does it act as a significant mediator between digital marketing and performance. This conclusion indicates that while digital marketing is a powerful driver, competitive advantage alone is insufficient to enhance performance in this context, suggesting the influence of other complex factors. The policy implication is that support programs for artisans must move beyond basic digital adoption and focus on holistic strategies that integrate marketing skills with other operational improvements to ensure sustainable growth in an increasingly digitized market
The Impact of Manufactured Imports on Manufacturing Sector Performance in Nigeria: Evidence from FMOLS and DOLS
Full text linkThe development of the manufacturing sector in Nigeria has the potential to contribute meaningfully to the country’s growth, helping to diversify the economy away from the dominant oil sector. However, this sector has been beset by several challenges over the years. This article examines the influence of manufactured imports on the manufacturing sector’s performance in Nigeria using an annual dataset spanning the period from 1982 to 2023. The study employs both the Fully Modified Ordinary Least Squares (FMOLS) and the Dynamic Ordinary Least Squares (DOLS) techniques. The focus of past studies has often been on examining the impact of specific variables on the manufacturing sector’s performance, mainly the exchange rate and the interest rate. The findings of this study indicate that manufactured imports exerted a negative and significant impact on the performance of the manufacturing sector according to the FMOLS model. Furthermore, while exchange rate appreciation leads to an improvement in the manufacturing sector’s performance, the impact of the lending rate is negative. Trade openness is also shown to have a negative impact on the manufacturing sector’s performance. Consequently, the study recommends that monetary policy should be used to guide both the exchange rate and interest rate towards desired outcomes to mitigate their adverse effects on the manufacturing sector’s performance. In addition, there is a need for the provision of various forms of subsidies to the manufacturing sector to reduce the cost of production, thereby making locally manufactured goods more competitive with imported products
The Mediating Role of Human Capital on the Effect of Social Assistance and Zakah on Poverty Reduction in Aceh Province, Indonesia
Full text linkThis study analyzes the effect of social assistance programs and Zakah on poverty reduction, with human capital as a mediating variable. The study is motivated by the critical need for poverty alleviation strategies that move beyond direct aid to those that enhance individual capacity through human capital development. Primary data were collected in 2024 from 152 purposively selected poor households in Aceh Province who receive both Social Assistance and Zakah. A Structural Equation Modeling (SEM) approach was employed to test the causal relationships between the variables. The findings indicate that while social assistance has no direct significant impact on poverty reduction, it exerts a positive indirect effect by strengthening human capital. Conversely, Zakah was found to have a direct effect on reducing poverty. Human capital itself demonstrates a strong, negative, and statistically significant relationship with poverty. However, the specific indirect mediating effect of human capital in the relationship between the aid programs and poverty was not significant. These results suggest that social interventions explicitly designed to enhance human capital may be more effective for sustainable poverty alleviation. The study implies that policymakers should reformulate social and economic policies to create more targeted programs that build human capital, thereby fostering a more sustainable impact on poverty reduction
Determinants of Micro, Small and Medium Enterprise (MSMEs) Performance: Evidence from Aceh Province, Indonesia
Full text linkThis study analyzes the effect of business capital, product quality, and human resource (HR) competence on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province, Indonesia. MSMEs play a strategic role in regional economic development but face persistent challenges, including limited capital, suboptimal product quality, and varying levels of HR competence. A quantitative approach was employed, utilizing a survey method where questionnaires were distributed to 357 culinary sector MSMEs across 23 districts/cities in Aceh. The collected data were analyzed using multiple linear regression with SPSS-20. The results indicate that business capital and product quality have a significant positive effect on MSME performance, while HR competence was found to have an insignificant effect. However, collectively, all three variables significantly affect MSME performance. These findings underscore the critical importance of facilitating access to capital and driving improvements in product quality to enhance MSME performance. Meanwhile, the negligible influence of HR competence suggests a need for further investigation into other factors, such as work experience or the quality of technical training. This study provides practical implications for MSME actors and policymakers, recommending a focused strategy on strengthening financial access and product innovation, alongside developing more targeted HR development programs to improve the competitiveness of MSMEs in Aceh Province, Indonesia
Examining the Effect of Third-Party Funding and Non-Performing Loan on Syariah Banking Financing: Moderating Role of Profitability
Full text linkToday, the expansion of the Sharia banking industry has shown sustained development over time, indicating satisfactory growth and enhancement, particularly in asset accumulation. Profitability moderates the relationship between third-party funds and non-performing financing on financing in Sharia banking (a case study of all Sharia commercial banks for 2018-2022). This study determines the influence of Third-Party Funds (DPK) and non-performing Financing (NPF) on financing with profitability as a moderating variable. This research uses a type of research, namely quantitative research using Moderated Regression Analysis (MRA). The samples used were 10 banks. The analytical tool used is multiple linear analysis using the EVIEWS application. Research results show that third-party funds have no effect on financing at Sharia Commercial Banks, non-performing financing has no effect on financing at Sharia Commercial Banks, and profitability cannot moderate third-party funds and non-performing financing on financing at Sharia Commercial Banks
Determining the Export Competitiveness of Indonesian Lobsters to Major Destination Countries
Full text linkThis study investigates the competitiveness of Indonesian lobster exports in five key destination markets—China, Taiwan, Hong Kong, Singapore, and Malaysia—and explores the influence of key export determinants, namely export prices, the GDP per capita of destination countries, and real exchange rates. The analysis employs the Revealed Comparative Advantage (RCA) and Export Product Dynamics (EPD) methods to evaluate competitiveness, while the determinants of export performance are examined using quarterly panel data from 2010 to 2022, analysed through the Panel Autoregressive Distributed Lag (ARDL) model. The results reveal that Indonesian lobsters exhibit a comparative advantage in Taiwan, Hong Kong, Malaysia, and Singapore, but not in China. Although Indonesia\u27s export market share has expanded in China and Taiwan, it has declined in Hong Kong, Malaysia, and Singapore, despite an overall increase in export volume. Long-term analysis indicates that rising export prices do not significantly deter the volume of lobster exports to major markets. Conversely, higher GDP per capita in importing countries is associated with reduced export volumes, particularly in China, where the comparative advantage is weak. This suggests that lobsters are not consistently perceived as luxury goods, as rising incomes may lead consumers to shift toward other food options due to diminishing marginal utility. In the short run, real exchange rates exert a significant impact on export performance. An appreciation of the Indonesian rupiah tends to reduce export volumes, whereas depreciation stimulates them. To bolster its global competitiveness, Indonesia is advised to increase export volumes, foster international trade partnerships, and enhance the quality of its lobster products. These strategies are essential for expanding market presence in both established and emerging export destinations
The Effect of Local Revenue, General Allocation Fund and Special Allocation Fund on Poverty Through Economic Growth in Aceh Province, Indonesia
Full text linkAceh Province faces serious challenges related to poverty that require special attention to improve people\u27s welfare. Various efforts have been made by the Aceh government to reduce poverty, but the poverty rate in Aceh Province is still relatively high compared to other provinces in Sumatra. This study analyses the effect of local revenue, general allocation funds, and special allocation funds on poverty through economic growth in districts/cities of Aceh Province. Quantitative methods of path analysis and panel data regression models were used to analyse panel data from 23 districts/cities in Aceh Province for 2015-2023. The results showed that in Model I, local revenues had a positive effect on economic growth, general allocation funds had no effect on economic growth, and special allocation funds had a positive effect on economic growth. Furthermore, in Model II, local revenue has a negative effect on poverty, general allocation funds have a positive effect on poverty, and special allocation funds have no effect on poverty. In Model III, economic growth has a negative effect on poverty. Economic growth mediates the relationship between local revenues and special allocation funds on poverty. The government needs to implement policies that optimise revenues to increase regional fiscal independence, improve local economic growth and reduce poverty
Agency Banking Adoption Trends among Bank Customers in Tanzania: A Continued Perspective
Full text linkAgency banking has become crucial for expanding financial inclusion by offering banking services to underserved urban and rural areas. This study examines the behavioral factors affecting customers\u27 continued intention to adopt agency banking using the Expectation-Confirmation Model (ECM). Data was gathered through closed-ended questionnaires distributed via Google Forms and drop-off/pick-up methods, resulting in 166 responses analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) using SMARTPLS 4.0 software. Findings indicate that customers’ satisfaction, subjective norms, perceived usefulness, and perceived convenience significantly and positively impact the continued intention to adopt agency banking. However, perceived cost and perceived trust were not significant. Additionally, perceived usefulness and confirmation significantly and positively impact customer satisfaction, while confirmation significantly impacts perceived usefulness. Mediation analysis showed that satisfaction and perceived usefulness significantly mediate the relationships examined. To enhance customers\u27 intention to continue using agency banking, policymakers should develop strategies that promote communal culture, positive behavior towards agency banking, increased services, and broader understanding of its benefits. This research offers insights for academics and practitioners on improving adoption strategies and policies to boost financial inclusion