Do Accounting, Market, and Macroeconomic Factors Affect Financial Distress? Evidence in Indonesia

This paper aims to investigate the effect of accounting, market, and macroeconomic factors on financial distress. The investigations were expanded by constructing seven research models to simulate all factors. The research sample includes companies listed on the IDX from 2016 to 2020 which produce 1.710 data. This paper finds that retained earnings (RETA) and earnings (EBITTA) as part of accounting factors have a role in weakening financial distress and can be consistently tested in several research models. Equity (MVE) as part of the market factor weakens financial distress and is consistently tested. Although solvency (SOLV) was described as the company's ability to maximize debt, it is not consistently tested in several research models. Finally, it was found that deflationary conditions caused financial distress which represented macroeconomic factors. This paper makes a practical contribution to companies and governments to evade financial distress

State, market, and the manufacturing of war memory: China’s television dramas on the war of resistance against Japan

Remembering the War of Resistance against Japan is central to China’s memory and identity politics. By focusing on the production of China’s War of Resistance television dramas, this study analyzes how collective memory is shaped by market actors and their interactions with the state. The first substantive section investigates how commercial media and the state cooperate in the production of War of Resistance television dramas. The second explicates how market actors undermine the state’s ideological imperatives by adding entertainment content to repackage war memory, which then conflicts with the propagandistic task. This study contributes to introducing the market factor to research on the remembering of War of Resistance in China and enriching the political economy of memory approach by examining an authoritarian state-capitalist case, which is centrally characterized by these cooperative and conflictual relations between the state and the market.

A Study on the Style Investment of Equity Funds

We classify “fund style” by the fund name and conduct a portfolio-based style analysis. The main results are as follows. First, the proportion of value-style and dividend-style funds is very high compared to other style types in active funds. Second, managers tend not to adhere strictly to the fund style classified by the fund name. Interestingly, the smaller the fund size, the weaker the style characteristics. This result suggests that the management industry neglects small funds and does not fulfill its fiduciary duty. Third, we find that the persistency of the growth style is far behind the value style, and both winner and loser styles have the lowest persistency among all styles. Fourth, timing abilities for market factor, size factor, and value factor are not observed in general, but the timing ability for momentum factor is significantly observed in the active fund group. Fifth, we define artificial fund styles with consistent style investment strategy and compare those with the actual fund styles. We find that the risk of artificial types is generally lower than that of actual types and that several artificial types dominate real types due to higher returns and smaller risks.

The New Social Construction of Entrepreneurship: From Professional Workers to Moslempreneurs

The concept of entrepreneurship is an important factor for increasing economic growth in Indonesia. Moslempreneur is an actor in entrepreneurship, who has and shows an identity with a distinctive personality and characteristics as a Moslem, who is able to carry out Islamic business ethics. Business competition in the global era demands a competitive advantage. The phenomenon that arose from the formation of a university graduate’s entrepreneurship is laymen. The construction of entrepreneurship from moslem workers who have a professional background and feel bored in the organization can increase the amount of entrepreneur effectively. This study used a behavioral and organizational approach in forming professional moslempreneurs, so this study examined individual, organization, market factor, and professional skills that affect moslempreneur intention and behavior by using the Structural Equation Model (SEM) in executing data analysis on this quantitative research. Sampling was collected by a purposive snowball sampling method on 108 moslempreneur respondents in Indonesia who have a professional background. The results showed that 1) entrepreneurship intention reflected through individual factors, market factor, and professional skill; 2) organizational factors affect professional skill; 3) entrepreneurship intention affects entrepreneurship behavior; 4) the contextual elements (entrepreneurial instruments) do not moderate the relationship between the entrepreneurship intention to entrepreneurship behavior. The managerial implication suggests potential experienced moslem workers who are still in the organization and intend to be entrepreneurs can be moslempreneurs without any hesitation in making entrepreneurial decisions. This research finding revealed new mini theory named a "Signaling Moslempreneurship".

Pricing with Variance Gamma Information

In the information-based pricing framework of Brody, Hughston & Macrina, the market filtration {Ft}t≥0 is generated by an information process {ξt}t≥0 defined in such a way that at some fixed time T an FT-measurable random variable XT is “revealed”. A cash flow HT is taken to depend on the market factor XT, and one considers the valuation of a financial asset that delivers HT at time T. The value of the asset St at any time t∈[0,T) is the discounted conditional expectation of HT with respect to Ft, where the expectation is under the risk neutral measure and the interest rate is constant. Then ST−=HT, and St=0 for t≥T. In the general situation one has a countable number of cash flows, and each cash flow can depend on a vector of market factors, each associated with an information process. In the present work we introduce a new process, which we call the normalized variance-gamma bridge. We show that the normalized variance-gamma bridge and the associated gamma bridge are jointly Markovian. From these processes, together with the specification of a market factor XT, we construct a so-called variance-gamma information process. The filtration is then taken to be generated by the information process together with the gamma bridge. We show that the resulting extended information process has the Markov property and hence can be used to develop pricing models for a variety of different financial assets, several examples of which are discussed in detail.

Revisiting Fama–French’s asset pricing model with an MCB volatility risk factor

Purpose Since the introduction of VIX to measure the spot volatility in the stock market, VIX and its futures have been widely considered to be the standard of underlying investor sentiment. This study aims to examine how the magnitude of contango or backwardation (MCB volatility risk factor) derived from VIX and VIX3M may affect the pricing of assets. Design/methodology/approach This paper focuses on the statistical inference of three defined MCB risk factors when cross-examined with Fama–French’s five factors: the market factor Rm–Rf, the size factor SMB (small minus big), the value factor HML (high minus low B/M), the profitability factor RMW (robust minus weak) and the investing factor CMA (conservative minus aggressive). Robustness checks are performed with the revised HML-Dev factor, as well as with daily data sets. Findings The inclusions of the MCB volatility risk factor, either defined as a spread of monthly VIX3M/VIX and its monthly MA(20), or as a monthly net return of VIX3M/VIX, generally enhance the explanatory power of all factors in the Fama and French’s model, in particular the market factor Rm–Rf and the value factor HML, and the investing factor CMA also displays a significant and positive correlation with the MCB risk factor. When the more in-time adjusted HML-Dev factor, suggested by Asness (2014), replaces the original HML factor, results are generally better and more intuitive, with a higher R2 for the market factor and more explanatory power with HML-Dev. Originality/value This paper introduces the term structure of VIX to Fama–French’s asset pricing model. The MCB risk factor identifies underlying configurations of investor sentiment. The sensitivities to this timing indicator will significantly relate to returns across individual stocks or portfolios.

Retention and Resignation of Nurses in Government Hospitals of Cebu City, Cebu, Philippines

This study determined the status of the retention and resignation of nurses in government hospitals of Cebu City, Cebu for calendar year 2004-2007. The findings of which were used as bases for recommendations. Further, it answered the following questions:1.What are the individual factors that have influenced the retention and resignation of nurses in terms of:1.1.age;1.2.gender;1.3.length of service;1.4.educational qualification;1.5.tenure;1.6.designation/position; and1.7.salary?2.What factors have influenced the retention and resignation of nurses as perceived by the chief nurses in terms of:2.1.organizational factor;2.2.economic-labor market factor?3.What work retention strategies can be proposed based on the findings of the study?This study utilized the descriptive design. This qualitative study determined the status of the retention and resignation of nurses in government hospitals in Cebu City, Cebu. Further, it determined the factors that have influenced the retention and resignation of nurses as perceived by the chief nurses in terms of organizational factor and economic-labor factor. The study includes three hospitals: Cebu City Medical Center; St. Anthony Mother and Child Hospital; and Vicente Sotto Memorial Medical Center.Majority of the retained nurses were 21-27 years old, females, with less than a year work experience, without master’s degree units taken, still in contractual status, all functioned as staff nurses, and with a salary range of 6,000 to 8,000 Philippine pesos. Majority of the resigned nurses were 21-27 years old, females, with less than 1-2 year work experience, without master’s degree units taken, regular status, all functioned as staff nurses, and with a salary range of 8,000 to 10,000 Philippine pesos.In the aspect of organizational factor, the chief nurses perceived that the philosophy, vision-mission, goals, objectives, and values formation were discussed with the employees during the orientation. On the other hand, policies in the hospital were reviewed and updated regularly, and disseminated to the areas for uniformity. In terms of dealing with religious obligations of nurses, practices of employees were considered and given importance, thus they were involved in activities such as Eucharistic celebrations.With regards to the process of promotion to higher position, all nurses had to pass the qualifications from the duly appointed selection of the hospitals before they will be awarded with a promotion. In terms of the job description and scope of nurses’ job, these are discussed to every staff during the orientation. Pertaining to how often the chief nurse conduct rounds and surveys in the ward, they do this from time to time. To manage errors committed by the nurses in the wards, they conduct thorough investigation in order to correct the error. In relation to the rotation of nurses to different wards/areas, they do rotations of staff nurses to different areas every 3 months.In the aspect of economic-labor market factor, the chief nurses perceived the regularization process of every nursing staff was decided by the performance evaluation board or the appointing officer. For the hiring process, the chief nurses usually post the vacancies. They were tasked to do the preliminary screening, and they forward the recommendation to their appointing officer. With regards to the handling of advertisements for vacancies and promotion of their institution, they use the newspapers and radios to inform the public.

The Three-factor Model and China’s Multiple Stock Markets

This paper aims at discussing the applicability of the three-factor model in China’s multiple security markets. The monthly returns of Shenzhen Main Board Market, Shanghai Stock Market, GEM Securities Market and Small and Medium Board Securities Market from January 2012 to December 2016 are selected as samples. The following conclusions are drawn: the three-factor model is applicable in Shenzhen Main Board Market, that is, the change of stock return is proportional to market factor, book-to-market ratio factor, and inversely proportional to scale factor. Moreover, in terms of the explanatory power of the change of stock return, the market factor is the highest, the scale factor is the second, and the book-to-market ratio factor is the lowest. But in the other three markets, the two-factors model that excludes the ratio of book market value can explain the change of stock return better. In addition, the explanatory power of market factor is better than scale factor.