Asian Journal of Economics, Business and Accounting
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Toward Golden Indonesia 2045: Policy Shifts, Governance Challenges, and Future Directions
No full textThis study analyzes the challenges and opportunities facing Indonesia in its pursuit of the "Golden Indonesia 2045" (Indonesia Emas 2045) vision, particularly under the new administration\u27s "security-focused" economic agenda. While this paradigm shift, manifested through ambitious programs such as free nutritious meals, energy and food self-sufficiency, and the establishment of a powerful new sovereign wealth fund (SWF) named Danantara, aims to bolster national resilience, it introduces profound challenges. This study uses a descriptive approach through qualitative methods with extensive literature review. The paper critically examines the severe fiscal pressures arising from these costly initiatives, which have forced drastic budget reallocations away from key sectors like infrastructure. Furthermore, it highlights significant governance risks associated with Danantara, whose position under direct executive control raises concerns about its independence and potential for political misuse. The study also interrogates the continued reliance on a commodity downstreaming industrial strategy, which exposes the economy to global price volatility, and the macroeconomic dilemma created by a notable divergence between strong headline GDP growth and weakening real-sector indicators. Ultimately, the paper concludes that realizing the 2045 vision is contingent upon a renewed commitment to fiscal discipline, the establishment of robust and transparent institutional governance, aggressive economic diversification away from commodities, and sustained investment in human capital
Relationship between Parental Financial Support and Student Spending Pattern at the Tertiary Level
No full textThis study examined the relationship between parental financial support and student spending patterns among 321 tertiary students at Davao Oriental State University-Cateel Campus, Philippines using a descriptive correlation research design. Findings revealed that students generally received a high level of parental financial support, which significantly influenced their spending behaviors across four categories: personal needs, food, academic purposes, and transportation. The results showed that students prioritized academic-related expenses the most, followed by food, transportation, and personal needs. Pearson correlation analysis revealed a moderate and significant relationship (r = 0.453, p < 0.05) between parental financial support and overall student spending patterns. Regression analysis further confirmed that parental support significantly predicted student spending behavior, accounting for 20.5% of the variation. The study highlights the importance of parental financial support in shaping students\u27 financial decisions and emphasizes the need for financial literacy programs to promote responsible spending habits. The findings may guide parents, educators, and policymakers in developing interventions to enhance students\u27 financial management skills and autonomy
Assessment of Tax Pro-Max Initiative and Revenue Performance in Nigeria
No full textThis study assessed effect of Tax Pro-Max initiative on revenue performance in Nigeria, examining both the intended objectives and actual outcomes of the policy. The research design adopted was ex-post facto. Secondary data were sourced from the quarterly reports of the Federal Inland Revenue Service beginning from 2018 to 2023, culminating to 24 quarters. The study employed regression as the technique of data analysis and descriptive statistic for comparison of means with the aid of E-Views version 12 as a tool for data analysis. The study found that Tax Pro-Max had positive effect on tax compliance and revenue performance in Nigeria. It was therefore recommended among others that Federal Inland Revenue Service should create e-tax payment mobile application that can be installed on android phones to further simplify the self-assessment system
The Impact of Low-carbon City Pilot Policy on Outflow of Corporate FDI in China: An Empirical Assessment
No full textTo investigate the impact of China\u27s low-carbon city pilot (LCCP) policy on corporate Outward Foreign Direct Investment (OFDI), aiming to understand its role in promoting international expansion and industrial upgrading amidst a global low-carbon transition. This study employs a multi-period Difference-in-Differences (DID) model to analyze panel data from Chinese A-share listed companies from 2007 to 2023. The model is used to quantitatively assess the policy\u27s direct impact, transmission mechanisms, and heterogeneous effects on corporate OFDI. The research reveals that the LCCP policy significantly promotes corporate OFDI. This promotional effect is more pronounced for firms located in large, central, and key environmental protection cities. Furthermore, green innovation and digital transformation are identified as crucial mediating pathways through which the policy influences OFDI decisions. Based on the findings, it is recommended that the government should strengthen policy support through special funds and tax incentives to lower corporate transition costs. In parallel, firms should proactively increase R&D investment and accelerate digital upgrades to fully leverage the opportunities presented by the low-carbon strategy
The Mediating Role of Organizational Citizenship Behavior and Product Creativity between Risk-taking Tendency, Transformational Leadership and Performance
No full textThis study examines the influence of risk-taking tendencies and transformational leadership on organizational performance, emphasizing the mediating roles of product creativity, organizational citizenship behavior, and management accounting systems (MAS). This study employed a quantitative survey method by distributing self-administered questionnaires to 277 Chief Executive Officers (CEOs) of manufacturing firms in Banten Province. Data were analyzed with structural equation modeling (Smart PLS 3.3). The findings support thirteen hypotheses, demonstrating that risk-taking tendencies and transformational leadership positively affect product creativity and MAS, while product creativity and organizational citizenship behavior further enhance MAS. Moreover, MAS significantly mediates the relationship between both risk-taking tendencies and transformational leadership with performance. Overall, the results highlight that fostering risk-taking behavior and transformational leadership indirectly improves organizational performance through stronger creativity and MAS practices. Theoretically, this study extends organizational behavior and management accounting literature by integrating leadership, creativity, and control systems into a unified framework. Practically, the findings underscore the importance for managers to align transformational leadership styles with organizational needs for creativity, innovation, and calculated risk-taking. Supported by a well-designed Management Accounting System (MAS), this alignment can enhance decision making processes and foster a performance. Managers are encouraged to cultivate leadership behaviors that inspire innovation and support a risk taking tendency, as these elements are shown to significantly contribute to improved organizational performance in dynamic and competitive environments
Challenges on Accessibility of Financial Products on SMEs’ in Tanzania: A Case of Selected Banks in Iringa Municipality
No full textThis study investigates the social challenges affecting the accessibility of financial products for Small and Medium Enterprises (SMEs) in Iringa Municipality, Tanzania. Despite SMEs being crucial to economic growth, they face significant barriers, particularly related to gender, financial literacy, and cultural attitudes toward debt. The research identifies a knowledge gap in understanding how these social issues specifically impact SMEs in Iringa, contrasting with findings from urban centers like Dar es Salaam. Utilizing a mixed-methods approach, the study combines quantitative data from 100 SME owners and qualitative insights from 10 bank officials. Data analysis involved descriptive statistics for the quantitative data and thematic analysis for qualitative insights. Findings reveal that 75% of respondents acknowledge limited financial literacy and negative cultural perceptions significantly hinder SMEs\u27 access to formal financial services. Furthermore, gender-based discrimination in loan approval processes disproportionately affects women entrepreneurs, reducing their opportunities for business growth. The study concludes that addressing these social challenges, especially gender-related barriers and access to information, is essential for improving SMEs’ participation in formal financial systems. Programs targeting awareness, empowerment, and gender equality will be critical in overcoming these constraints. Recommendations include enhancing financial literacy programs tailored for SMEs, promoting gender-sensitive lending practices, and fostering community awareness to shift cultural perceptions around debt. Addressing these social challenges is essential for improving financial inclusion and empowering SMEs in Iringa Municipality
Has Manufacturing Emerged as the Engine of Economic Growth in India? Evidence from the ARDL Bounds Testing Approach
No full textAgricultural, manufacturing and service sectors are major pillars of India’s economy, contributing to employment, innovation, food security and trade. The contribution of the agricultural sector to India’s GDP stands at 18.2 per cent in comparison to 17 per cent and 55 per cent of the contribution made by manufacturing and service sectors, respectively. The growth of these three sectors has driven structural changes in the Indian economy, highlighting the need to understand the contribution of each sector in economic growth in India. Moreover, early research has undermined the role of manufacturing sector as a key contributor in India’s economic growth, indicating a gap in the literature. This paper attempts to find out the key drivers of economic growth of India out of three sectors of the economy - agriculture, manufacturing and service. To achieve this objective, the study employs the ARDL bounds testing approach using annual data spanning from 1960 to 2023. In the ARDL model, real GDP is taken as the dependent variable, while the shares of agriculture, manufacturing and service sectors in GDP are considered as the main independent variables. Additionally, five control variables are used. These are: government expenditure; gross capital formation, inflation, trade openness and population growth rate. The results of the ARDL bounds test confirm the existence of a long-run relationship between India’s real GDP and the explanatory variables. The findings further reveal that gross capital formation, trade openness and government expenditure exert positive and significant impact on economic growth, whereas the population growth and inflation exert negative and significant effect on economic growth. The most notable result is that the coefficient of the service sector’s share in GDP is positive but statistically insignificant, suggesting that the service sector has reached a level of saturation and no longer serves as a major driver of India’s economic growth. In contrast, the manufacturing sector’s share in GDP shows a positive and significant impact on economic growth, indicating that manufacturing has emerged as the main engine of economic growth of India in the current context. Similarly, the impact agricultural sector’s share on economic growth is also positive and significant, highlighting its renewed importance as a growth driver, particularly in the post-COVID-19 period. Thus, the study suggests that among the three sectors of Indian economy, the effect of manufacturing sector on economic growth is the highest, therefore it can be considered as engine of economic growth of India, followed by agriculture sector. As the manufacturing sector has the major contribution in economic growth, it is recommended that the government should focus on efficiently implementing policies such as Make in India and Startup India to strengthen this sector
The Influence of Digital Trust and Artificial Intelligence Literacy on Business Sustainability: The Mediating Role of Innovation Capability
No full textThis study examines the influence of digital trust and Artificial Intelligence (AI) literacy on the sustainability of micro, small, and medium-sized enterprises (MSMEs), with innovation capability serving as a mediating variable. As key drivers of Indonesia’s economy, MSMEs continue to face challenges such as uneven digital adoption and limited AI comprehension, both of which hinder long-term competitiveness. This research adopts a quantitative explanatory design, using survey data from 120 MSMEs in Surabaya and Malang, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that the model explains 77.4% of the variance in innovation capability and 82.2% of the variance in business sustainability, with a strong predictive level. Innovation capability was found to mediate 34.1% of the influence of digital trust and 28.4% of the influence of AI literacy on sustainability. These findings confirm that digital trust and AI literacy play an important role in driving innovation, which in turn enhances business competitiveness and resilience. This research enriches the technology acceptance model and dynamic capability framework by incorporating digital trust and AI literacy into the study of MSMEs\u27 sustainability. Beyond its academic contribution, the study also provides empirical evidence from the underexplored Indonesian MSME, while offering practical recommendations for policymakers and business practitioners to strengthen digital trust, enhance AI competencies, and design innovation-based strategies that support sustainable growth
The Role of Dividend Policy in Profitability Moderation and Return on Stock Price Valuation in the Indonesian Financial Sector
No full textThis study aims to analyze the influence of profitability and stock returns on stock price valuation with dividend policy as a moderation variable. Profitability indicators are measured through the ratio of earnings to assets, stock returns are measured from the annual rate of return, stock price valuations are measured using the Price to Book Value (PBV) ratio, while dividend policies are proxied through the Dividend Payout Ratio (DPR). This study uses a descriptive quantitative approach with purposive sampling techniques, involving 48 observations from financial sector companies for the 2021–2024 period. Data analysis was carried out using SPSS 26 through t-test and moderation analysis. The results of the study show that profitability and stock returns do not have a significant effect on stock price valuation, while dividend policy has a significant negative effect. In addition, dividend policy does not moderate the effect of profitability on stock price valuation but is almost significant in moderating the relationship between stock return and stock price valuation. Theoretically, these findings broaden the understanding of the role of dividend policy as a factor that can influence the market\u27s assessment of companies, particularly in the context of signal theory and valuation theory. Practically, these results provide insight for management and investors to consider dividend policy as a market signal in investment decision-making. In terms of originality, this study integrates dividend policy variables as a moderator in the relationship between financial performance and stock valuation in the financial sector in Indonesia. The limitations of this study lie in the relatively small sample size and focus on only one industry sector. Further research is recommended to expand the cross-sector sample as well as use a data panel approach to obtain more general results
Gender Gap in Digital Financial Services: In Search of Financial Inclusivity in Indian Sundarban
No full textIndia is on the progressive path of development and its rural population is an integral part of the growth trajectory. As India gears up for an era of increased digitalization, the issue of digital banking, specifically in rural areas is the need of the hour for financial inclusion and social empowerment. The present research scrutinizes the extent of female population, under the ‘Digital India’ initiative in the banking-based financial sector in the selected study area i.e. Indian Sundarban and explores the aspects behind the resultant low female clientele.
The study area involves six community blocks of the Indian part of the Sundarban: Hingalganj, Sandeshkhali II, Mathurapur II, Sagar, Gosaba and Canning II covering districts of North and South Twenty-Four Parganas. The study was carried out from September, 2023 to October, 2024, involving stages from pilot survey to detailed door-to-door household surveys and data processing, analysis thereafter.
The factors influencing the female customer satisfaction regarding digital banking is identified through Principal Component Analysis and issues regarding implementation of usage of Digital Financial Services (DFS) by women is evaluated through SWOC analysis. The study is based on mixed-method approach, involving a stratified sampling, taking a sample of 2400 customers (1030 female respondents) along with 36 bank officials 100 women of Self-Help Group and 36 small entrepreneurs for the study from different pockets of Indian Sundarban,
The study revealed low digital literacy levels in general and psychological phobia among women in particular put a setback. The banks are to level up their operations in the rural areas exposing the locals more to digital avenues leading to capacity building.
Policy and strategy implementation are the need of the hour for reducing gap between the idea and the experienced reality that is between the digital banking facility and the people’s involvement, especially women, in digital banking