Do related party transactions affect earnings quality? Evidence from East Asia

2020 ◽  
Vol 28 (1) ◽  
pp. 147-166 ◽  
Author(s):  
Mohd Mohid Rahmat ◽  
Balachandran Muniandy ◽  
Kamran Ahmed
Keyword(s):  
Hong Kong ◽  
East Asia ◽  
Negative Impact ◽  
Earnings Quality ◽  
East Asian ◽  
Annual Reports ◽  
Asian Countries ◽  
Content Type ◽  
Related Party Transactions ◽  
And Performance

Purpose The purpose of this paper is to examine the effect of related party transactions (RPTs) and types of RPTs (complex, simple and loan) on earnings quality in four East Asian countries: Hong Kong, Malaysia, Singapore and Thailand. Design/methodology/approach RPTs and types of RPTs are measured using two approaches, magnitude and abnormal (magnitude change). Earnings quality is measured using proxies for accrual earnings management and identified as discretionary accruals (DAC) and performance matched discretional accruals (PMDAC). Findings The results suggest that firms in these countries experience poor earnings quality when they are engaged in RPT. The effect of RPT-simple on earnings quality is more severe than RPT-complex. However, the presence of higher investor protection and stricter enforcement of regulations in countries like Singapore and Hong Kong reduce the negative impact of RPTs on earnings quality. Research limitations/implications The results support the argument that the presence of controlling shareholders in East Asia is likely to lead to engagement with RPTs, which will increase the likelihood of firms’ earnings manipulation via DAC. This study has two limitations. It only focuses on Hong Kong, Malaysia, Singapore and Thailand, and the results may not be generalizable to other countries. Second, this study only measures the magnitude and abnormal RPTs based on the disclosures available in annual reports. Originality/value This paper contributes to the literature by examining the effect of RPTs and types of RPTs on earnings quality in four selected East Asian countries. 

Parts of South-east Asia may adopt nuclear post-2030

2021 ◽  
Keyword(s):  
East Asia ◽  
Nuclear Power ◽  
Large Scale ◽  
East Asian ◽  
Energy Development ◽  
South East Asia ◽  
Asian Countries ◽  
Content Type ◽  
Electricity Grid ◽  
Renewable Energy Development

Significance It is the only country in South-east Asia with a large-scale nuclear plant, although this was never loaded with fuel. Other countries in the region have tentative plans to develop nuclear power programmes. Impacts The current absence of nuclear power programmes will help avert the diversion of capital from renewable energy development in the region. South-east Asian countries with small, non-power reactors, built for research, will try to maintain these facilities. Across the region, the need for electricity grid investment will increase as more decentralised generation sources are deployed.

The economic impact of a rise in US trade protectionism on East Asia

2018 ◽  
Vol 22 (3) ◽  
pp. 265-279 ◽  
Author(s):  
Inkyo Cheong ◽  
Jose Tongzon
Keyword(s):  
East Asia ◽  
Economic Impact ◽  
Empirical Evidence ◽  
East Asian ◽  
Economic Loss ◽  
East Asian Country ◽  
Asian Countries ◽  
Content Type ◽  
The Usa ◽  
Asean Countries

Purpose The purpose of this paper is to evaluate the economic impact of a rising US trade protectionism on the economies of China, Japan, South Korea and the ASEAN countries and draw out some policy and strategic implications for the USA and East Asia. Design/methodology/approach The authors employ a computable general equilibrium approach supplemented with qualitative analyses based on empirical evidence. Findings An increase in US import tariffs would result in economic losses for the USA and the corresponding country or region to which the import tariff increase is applied. An increase in US import tariffs for Chinese goods alone would not have any spillover effects on other East Asian countries. But, an imposition of a border adjustment tax (BAT) for all countries and for all products would actually boost US economic growth. Advanced economies would enjoy GDP increases, but China, Korea and the ASEAN countries would face an economic loss in a longer term period, although they would enjoy some growth in the short term. However, when the BAT only applies to a specific East Asian country, USA would suffer an economic loss, with the exception of a BAT specifically targeted at the ASEAN countries. ASEAN countries would not experience any economic loss under all scenarios except in the case of import tariffs specifically targeted at ASEAN. Research limitations/implications From the US perspective, it is beneficial to adopt a BAT for all countries and across the board. Under this arrangement, there would be an economic loss for China, Korea and the ASEAN countries in the longer term. An increase in US trade protectionism would only push the East Asian countries towards deeper economic integration, with serious implications for global pattern of trade and investment. Originality/value The existing literature on the likely economic impact of US trade protectionism on East Asia is very scarce and based on surveys and subjective speculations. This study uses a quantitative method based on empirical evidence.

ASEAN-India naval ties are symbolic, for now

2015 ◽  
Keyword(s):  
East Asia ◽  
Prime Minister ◽  
East Asian ◽  
Humanitarian Aid ◽  
South East Asia ◽  
Asian Countries ◽  
Content Type ◽  
Regional Role

Subject The outlook for Indian naval engagement with South-east Asian countries and ASEAN. Significance At the ASEAN summit in mid-November, India's Prime Minister Narendra Modi underlined India's 'Look East' policy, pledging to cultivate diplomatic, economic and security relationships with South-east Asia. One manifestation of Delhi's willingness to undertake a more strategic regional role is the Indian navy's growing portfolio of partnerships with South-east Asian navies. Amid concerns over China's maritime assertiveness, India's navy has been welcomed in the region as a security partner. Impacts India will avoid South-east Asian undertakings that may provoke China. Delhi will need to define 'Look East' policies concretely to convince South-east Asia fully of Indian strategic utility. Modi will expand bilateral naval exercises, humanitarian aid and counter-piracy/smuggling efforts in South-east Asia.

scholarly journals Medical Education in East Asia: Past and Future

2019 ◽  
Vol 107 (2) ◽  
Author(s):  
Gregg A. Stevens
Keyword(s):  
Medical Education ◽  
Hong Kong ◽  
South Korea ◽  
East Asia ◽  
East Asian ◽  
Asian Countries ◽  
History Of

This collection of essays in Medical Education in East Asia: Past and Future outlines the history of medical education in five East Asian countries and territories: China, Japan, South Korea, Taiwan, and Hong Kong.

South-east Asia coastguard growth could see friction

2016 ◽  
Keyword(s):  
United States ◽  
East Asia ◽  
Capacity Building ◽  
East Asian ◽  
The United States ◽  
The Philippines ◽  
South East Asia ◽  
Asian Countries ◽  
Content Type ◽  
Territorial Claims

Subject Development of South-east Asian coastguards and their geopolitical implications. Significance Senior coastguard officers from Australia, Japan, the Philippines and the United States will meet later this year to discuss cooperation and capacity-building -- and the assertive actions of China's coastguard in littoral waters. With external partners' support, South-east Asian states are developing their coastguards to fight crime and assert maritime territorial claims. Impacts Fishing activities will probably trigger spats between South-east Asian and China's coastguards. Gradually, inter-operability between South-east Asian coastguards will expand. Tokyo and Washington will use coastguards to deepen ties with South-east Asian countries. There could be frictions between Indonesia's and Malaysia's coastguards over waters around Ambalat.

South-east Asia-US trade preferences debates beckon

2017 ◽  
Keyword(s):  
United States ◽  
East Asia ◽  
East Asian ◽  
The United States ◽  
South East Asia ◽  
Asian Countries ◽  
Content Type ◽  
The Us ◽  
Trade Preferences ◽  
Trump Administration

Significance The preferential US trade programme faces renewal or lapse by December 31. South-east Asia’s economies are structured to take advantage of the GSP and many of the products exported to the United States under GSP (such as light manufactures and seafood) are important for South-east Asia’s supply chains. Impacts Vietnam may make another application for inclusion in the US GSP programme. The more authoritarian South-east Asian countries could find it easier to gain US GSP preferences under Trump. The Trump administration could use the GSP as a bargaining chip in trade negotiations or renegotiations.

South-east Asian microfinance will grow despite risks

2019 ◽  
Keyword(s):  
Interest Rates ◽  
East Asia ◽  
East Asian ◽  
Limited Resources ◽  
South East Asia ◽  
Asian Countries ◽  
Content Type ◽  
Global Recession ◽  
Monetary Authorities ◽  
Forced Labour

Subject Microfinance in Cambodia and other South-east Asian countries. Significance A report published last month by two human rights groups in Cambodia said microfinance debts have increased hardship for borrowers in the country. Meanwhile, a global economic slowdown is prompting monetary authorities in South-east Asia and beyond to cut interest rates. Impacts Debts associated with microfinance could make borrowers more vulnerable to human trafficking and forced labour. With their limited resources, micro-borrowers will be more exposed than most in the event of a global recession. Countries in South-east Asia and beyond will come under pressure to increase oversight of their microfinance sectors.

Emissions and trade in Southeast and East Asian countries: a panel co-integration analysis

2015 ◽  
Vol 7 (4) ◽  
pp. 460-475 ◽  
Author(s):  
Mansor H. Ibrahim ◽  
Syed Aun R. Rizvi
Keyword(s):  
Hong Kong ◽  
South Korea ◽  
East Asian ◽  
Estimation Method ◽  
The Philippines ◽  
Least Square ◽  
Trade Policies ◽  
Asian Countries ◽  
Content Type ◽  
Long Run

Purpose – The purpose of this paper is to analyse the implication of trade on carbon emissions in a panel of eight highly trading Southeast and East Asian countries, namely, China, Indonesia, South Korea, Malaysia, Hong Kong, The Philippines, Singapore and Thailand. Design/methodology/approach – The analysis relies on the standard quadratic environmental Kuznets curve (EKC) extended to include energy consumption and international trade. A battery of panel unit root and co-integration tests is applied to establish the variables’ stochastic properties and their long-run relations. Then, the specified EKC is estimated using the panel dynamic ordinary least square (OLS) estimation technique. Findings – The panel co-integration statistics verifies the validity of the extended EKC for the countries under study. Estimation of the long-run EKC via the dynamic OLS estimation method reveals the environmentally degrading effects of trade in these countries, especially in ASEAN and plus South Korea and Hong Kong. Practical implications – These countries are heavily dependent on trade for their development processes, and as such, their impacts on CO2 emissions would be highly relevant for assessing their trade policies, along the line of the gain-from-trade hypothesis, the race-to-the-bottom hypothesis and the pollution-safe-haven hypothesis. Originality/value – The analysis adds to existing literature by focusing on the highly trading nations of Southeast and East Asian countries. The results suggest that reassessment of trade policies in these countries is much needed and it must go beyond the sole pursuit of economic development via trade.

Russia will try to expand influence in South-east Asia

2018 ◽  
Keyword(s):  
South China Sea ◽  
East Asia ◽  
South China ◽  
East Asian ◽  
Strategic Alignment ◽  
The South China Sea ◽  
South East Asia ◽  
Asian Countries ◽  
The West ◽  
Content Type

Subject South-east Asia's relations with Russia. Significance Russia’s ties with the West are deteriorating. South-east Asia offers Moscow important diplomatic and economic opportunities. Impacts As Russia-China strategic alignment strengthens, Moscow and Beijing will increase coordination and cooperation in South-east Asia. Advanced Russian defence technology will further strengthen Beijing against South-east Asian claimants in the South China Sea dispute. Washington will try to encourage South-east Asian countries to buy US rather than Russian weapons.

South-east Asia lacks unified riposte to Islamic State

2018 ◽  
Keyword(s):  
East Asia ◽  
East Asian ◽  
Civil Liberties ◽  
South East Asia ◽  
Islamic State ◽  
Asian Countries ◽  
Security Risks ◽  
Content Type ◽  
Counter Terrorism ◽  
Legal Frameworks

Subject South-east Asia's regional response to Islamic State. Significance South-east Asian countries face security risks from Islamic State (IS)-affiliated militants. States are seeking to coordinate action at a region-wide level, with the ASEAN-Australia Special Summit last month including a parallel Counter-Terrorism Conference. Impacts Washington will likely use support for counterterrorism to develop defence relations in South-east Asia. Tougher legal frameworks to combat terrorism could result in laws that constrain civil liberties. For Australia, stronger ties with ASEAN could encourage a more conciliatory approach to the region’s autocratic regimes.

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