Open Access Case study

The Relationship between Personality Big-5 and Integrity among Leader in Northern University of Malaysia

Mariah Darus, Sakinah Muslim

Asian Journal of Economics, Business and Accounting, Page 56-61
DOI: 10.9734/ajeba/2020/v16i230237

The purpose of this study is to emphasize the relationship between BIG-5 personality and integrity among leaders in the Northern University of Malaysia. The integrity issue can be observed by the increasing public complaints on government service delivery systems. Public complaints can become a measurement index to the quality level of service delivery system as it is an expression of public dissatisfaction towards government services. One of the main challenges for the public servant is to improve the awareness of integrity among public servants especially the leaders. Previous research shows that the main factor that contributes to the integrity is the personality of the individual. Besides that, previous research also shows that the relationship between personality BIG-5 and integrity is not consistent. The study used quantitative methods with 5-point Likert scale measurement. The Big Five Inventory consists of 25 items as measurement and 25 items for integrity scale. The subjects of this study are 30 leaders from the Northern University of Malaysia. The use of Statistical Package for Social Science (SPSS) version 25.0 will be implemented in the acquisition of the results though reliability test, description analysis, and correlation. The findings show that personality Big-5 has a relationship with integrity.

Open Access Data Article

Stock Market Returns and Shareholders’ Wealth Sustainability of Companies Listed on the Nigerian Stock Exchange

Adekunle Orelope Koleosho, Folajimi Festus Adegbie, Ayooluwa Olotu Ajayi- Owoeye

Asian Journal of Economics, Business and Accounting, Page 27-45
DOI: 10.9734/ajeba/2020/v16i230233

Sustainability of shareholder’s wealth has been a subject of discussion globally due to various decisions of the managers and the effect it has on company’s performance. Various corporate actions and information about the companies are disseminated over time and studies have shown the effect on shareholder's wealth. This study examined the effect of capital market returns on sustainability of shareholder's wealth in Nigeria Listed Companies. The study adopted ex-post facto research design. A sample of 57 companies from a target population of 168 companies listed on the Nigerian Stock Exchange (NSE) as December 2018 was randomly drawn across the various market sectors for the panel data. The study used secondary data from the NSE, CBN and companies’ data on the Bloomberg Terminals. Validity and reliability were premised on the statutory audit of the financial statement. The study adopted descriptive and inferential (Regression and Correlation) statistics to analyze the data. The study found that the stock market returns indicators (dividend per share, earnings and Leverage) have joint and statistically significant relationship with market price per share: DPS, EPS and LEV with Adjusted R2 = 0.738, F(3, 796) = 54.74, p = 0.108 > 0.05. The study concluded that stock market returns measured by dividend and earnings have a significant effect on the shareholders' wealth while leverage exerts a negative effect on Market Price per share. The study recommended that the management of the companies should embrace the payment of dividend to shareholders while ensuring the growth of earnings over the period to sustain shareholder's wealth.

Open Access Original Research Article

Financial Distress Prediction Using Hybrid Machine Learning Techniques

Suduan Chen, Zong-De Shen

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/ajeba/2020/v16i230231

The purpose of this study is to establish an effective financial distress prediction model by applying hybrid machine learning techniques. The sample set is 262 financially distressed companies and 786 non-financially distressed companies, listed on the Taiwan Stock Exchange between 2012 and 2018. This study deploys multiple machine learning techniques. The first step is to screen out important variables with stepwise regression (SR) and the least absolute shrinkage and selection operator (LASSO), followed by the construction of prediction models, as based on classification and regression trees (CART) and random forests (RF). Both financial variables and non-financial variables are incorporated. This study finds that the financial distress prediction model built with CART and variables screened by LASSO has the highest accuracy of 89.74%.

Open Access Original Research Article

Financial Literacy Overconfidence and Consumer Financial Satisfaction: Evidence from the 2018 US National Financial Capability Study

Fuzhong Chen, Yibo Wang, Di Yu

Asian Journal of Economics, Business and Accounting, Page 13-26
DOI: 10.9734/ajeba/2020/v16i230232

An increasingly prevalent topic on the associations between financial literacy and consumer financial satisfaction has been highlighted in recent years. Utilizing the data from the 2018 US National Financial Capability Study, this study conducts ordered probit regressions to examine the effects of financial literacy on consumer financial satisfaction. To verify the robustness, this study performs a comprehensive check through replacing estimation methods, removing outliers by income, and performing regressions by various consumer cohorts. The results indicate that objective financial literacy has a significantly negative effect on consumer financial satisfaction, while subjective financial literacy has played a crucial role in improving consumer financial satisfaction. Thus, consumers are overconfident in their financial literacy. The results imply that policymakers should formulate policies to cultivate rational investment concepts and raise consumers’ risk awareness, as well as financial institutions should provide services of financial capability assessment to correct consumers’ self-perception bias.

Open Access Original Research Article

Study of the Impact of Different Investor Behaviours on Market Volatility

Abdolkarim Moghadam, Hamidreza Ghiabi

Asian Journal of Economics, Business and Accounting, Page 46-55
DOI: 10.9734/ajeba/2020/v16i230236

The purpose of this research is to study the impact of different investor behavior on the volatility of the bourse market. The field study consists of the companies listed on the stock exchange during the years 2012-2016. In this study, the different investor behaviour is considered the independent variable and the market volatility is the dependent variable. The present research is an applied study, in case the classification of researches in characteristics and methodology is considered, this study is considered descriptive research based on its characteristics and it is in the correlation study category based on its methodology. In this study collecting data and information has been done by library method and the data compilation has been fulfilled by referring to the financial statements, explanatory notes and monthly magazine of the bourse. In sample size determination based on data collecting system, 114 companies have been selected as the sample statistics. In order to describe and summarize the collected data descriptive and inferential statistics have been utilized. In analyzing the data first pre-test of variance homogeneity, Limer F test, Hausman test and JB test and then the multivariable regression (Eviews software) for confirmation or rejection of the hypothesis of the research has been used. The results show that the different investor behaviour consisting of the trading value of capital, investors net business flow and the investor trading volume share has a considerable impact on the volatility of the stock exchange.