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The Impact of Digital Transformation on the Innovation Capacity of Chinese-Listed Firms: The Role of Government Subsidies Yiming, Zhu; Manansala, Leo Delaric
International Journal of Applied Business and International Management Vol 9, No 2 (2024): August 2024
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/ijabim.v9i2.3393

Abstract

As digital transformation progresses, listed Chinese firms are undergoing significant changes in their practices. These changes are crucial for establishing and maintaining a competitive advantage. This research investigates the process by which digital transformation affects firms' capacity to innovate, specifically focusing on the influence of government subsidies. The data was obtained from 1,063 publicly traded in China from 2018 to 2022 with a total of 4,027 data points. A fixed-effects model, stepwise regression analysis, and bootstrapping techniques were employed to construct the models. To address the conventional quantitative constraints and provide a nuanced comprehension of digital transformation's influence, this study uses textual analysis. Research has shown that digital transformation has a substantial positive impact on the ability of companies to innovate. Additionally, government subsidies are proven to have a role in facilitating this process. This paper offers a fresh viewpoint on comprehending the mechanism of government subsidies for digital transformation and corporate innovation capability. It also provides evidence supporting the idea that government subsidies may enhance innovation incentives more effectively.
The Effect of Power and Internet Challenges on the Productivity of Small Enterprises in Southeast Asia: An Empirical Analysis Manansala, Leo Delaric; Vargas, Eric Abuso
International Journal of Applied Business and International Management Vol 10, No 1 (2025): April 2025
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/ijabim.v10i1.3758

Abstract

This study examines the effect of power shortages and internet interruptions on the productivity of small retail firms in Southeast Asia, specifically in Indonesia, the Philippines, and Vietnam. Using data from the 2015 and 2023 World Bank Enterprise Surveys, the research investigates how these disruptions affect firm output, with a focus on small enterprises, a sector often overlooked in existing literature. Power shortages have been shown to hinder productivity, but the effect varies by country, with regional and national contexts influencing the outcomes. This study incorporates internet interruptions as a newly considered variable in the 2023 data, adding a modern perspective on how digital infrastructure challenges impact small businesses. Using the Fixed Effects Model, Random Effects Model, and Ordinary Least Squares regression techniques, the research identifies significant effects of power shortages on productivity, particularly in Indonesia and Vietnam. However, internet interruptions did not show a statistically significant impact across the regions studied. The findings suggest that small retail firms may be less reliant on stable internet access compared to sectors that are more digitally intensive. The study highlights the importance of tailored, localized strategies to mitigate disruptions and calls for future research to explore contextual factors and adaptive strategies that affect productivity in the face of infrastructure challenges.
The Impact of ESG on the Performance of Philippine-Listed Firms: The Role of Audit Quality and CEO Duality Manansala, Leo Delaric; Mallorca, Elma Lim
International Journal of Applied Business and International Management Vol 10, No 1 (2025): April 2025
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/ijabim.v10i1.3760

Abstract

This study investigates the relationship between ESG performance and firm outcomes in Philippine-listed companies from 2012 to 2023, considering the moderating roles of audit quality, discretionary accruals (DACC), and CEO duality. Using data from 20 publicly listed firms and the Generalized Method of Moments (GMM), the findings reveal that higher ESG scores positively impact market-based performance metrics such as the Price-to-Book (P/B) ratio and EV/EBITDA, supporting the notion that strong ESG practices are valued by the market. Audit quality, measured by audit fees, strengthens this relationship, indicating that robust external oversight enhances confidence in ESG disclosures. On the other hand, high DACC—indicating earnings manipulation—negatively affects the ESG-performance link, suggesting that market participants may devalue ESG efforts if earnings are perceived as manipulated. CEO duality also moderates the relationship, with its effects depending on the governance context. The study highlights the complex, context-dependent nature of ESG’s impact on firm performance and underscores the importance of governance practices in realizing the financial benefits of ESG initiatives.