Business strategy and development 

About: Business strategy and development is an academic journal published by Wiley. The journal publishes majorly in the area(s): Computer science & Biology. It has an ISSN identifier of 2572-3170. Over the lifetime, 50 publications have been published receiving 75 citations. The journal is also known as: Bus. strat. dev & Business strategy & development.

Volatility of the US stock market and business strategy during COVID‐19

Abstract: This paper aims to measure the impact of COVID-19 and changes in economic policy uncertainty (EPU) on the US stock market volatility using Event Study, Stepwise Regression, and Vector Autoregression (VAR) models. The impact has been examined under three contexts namely inside the US, outside the US and the whole world. This study finds negative cumulative abnormal returns of the market in response to the announcement of new cases and death records whereas the market reacts positively to the announcement of the financial bailout. The negative and significant impact of reported deaths and cases on the volatility of stock indices indicates that the US stock market is highly sensitive to the COVID-19. EPU has a significant and positive impact on the volatility of the US stock market. The COVID-19, EPU, and volatility variables are cointegrated and move in a unidirectional way. This study considers the presence of a long-run relationship among the variables and concludes that the US stock market is more exposed to COVID-19 compared with the rest of the world.

Agency cost: A missing link between female on board and firm performance

Abstract: This research aims to investigate the relationship between the presence of females in the board of directors (BOD) and agency cost as well as firm performance with the mediating role of agency costs. We employ STATA to test feasible general least squares and generalized method of moments (GMM) on Vietnamese listed firms' data over 2015–2019. The results demonstrate that the presence of female directors is positively related to firm performance. The percentage of females has a positive relationship with agency cost, which has a negative impact on firm performance. The mediating role of the agency cost variable only reduces the positive impact of gender diversity in the BOD on firm performance, but this relationship is not reversed. The main contribution is the examination of the moderating role of state ownership and the mediating role of agency costs. Our study provides evidence about women's roles in different legal contexts, which might foster the formation of future legal frameworks.

The mediating mechanism of earnings management on the relationship between life cycle and financial reporting quality: Finding from MRA and fsQCA

Abstract: The study examined the relationship between organization life cycle (OLC) and financial reporting quality (FRQ) in the Vietnamese context with the mediating role of earnings management (EM). We used estimation OLS, fixed effects model, and other robustness tests to validate the results on a sample of 408 Vietnamese listed companies over the period 2010–2017. In addition, we compare the regression results with a recently established approach is, fuzzy-set qualitative comparative analysis (fsQCA). The multiple regression analysis results suggest that firms with low profits or poor financial performance have low-quality financial statements. On the other hand, when firms mature or have significant retained earnings, the quality of financial information improves and peaks. Besides, throughout the OLC, real earnings management behaviors are less likely to be used than accruals earnings management. Finally, because of the mediating effect of EM, the influence of OLC on FRQ is increased. The fsQCA findings indicate complex configurations between OLC, EM and other controls factors to the outcome of FRQ. This research contributes empirical evidence to the scientific literature on accounting and corporate governance. Next, the main contribution of our study is the examination of mediating role of EM on OLC-FRQ association through both regression analysis and the fsQCA approach. Additionally, we conducted this study in Vietnam, where the legal framework in protecting the investors is still not complete; this will significantly contribute to the literature overview of OLC and FRQ.

The effect of the informal sector on sustainable development: Evidence from developing countries

Abstract: This study aims to explore the impact of the informal sector on the sustainability of development. A large panel data set of 50 developing countries that spans over 2010–2019 has been utilized to this end while the informal sector is evaluated in terms of working poverty. Selecting indicators from three dimensions of sustainability, that is, economy, society, and environment, this study has constructed three indices and combines those to construct a symptomatic composite index of sustainability. Both the short run and long run panel data models have been applied to empirically investigate the impact of informal economic activities on the sustainability of development. Economic growth, national expenditure, and economic freedom of countries are used as control variables in the models and the estimated outcomes are found to be robust in empirical investigations. The outcomes of the study imply that the informal sector plays a detrimental role in the sustainable development of developing countries while economic growth and economic freedom contribute positively. Therefore, the prescribed strategy is to reduce informality from business and other economic activities that limit the scope of the economies and to understand the domain through which interventions can be made to move to a more formal economy. Integration of informal business and SMEs into the formal sector and firm-level awareness building in Corporate Social Responsibility can also be suggested to find a path towards sustainable development in addition to increased economic growth and enhanced economic opportunities of the developing countries.

Can intellectual capital contribute to financial and non‐financial performances during normal and crisis situations?

Abstract: The contribution of intellectual capital (IC) on financial performance have been found in previous studies but whether IC can also be utilised to improve non-financial performance has been understudied;let alone the contributions in different economic conditions (normal and crisis periods). This study aims to provide empirical findings to answer these issues by defining non-financial performance in terms of the environmental, social, and governance (ESG) performance and COVID-19 pandemic to represent the crisis. Non-financial companies listed on stock exchanges in the Southeast Asia countries that are member of ASEAN (Association of Southeast Asian Nations) were selected as the samples for the research period of 2016-2020. The results show that the IC has a positive association with financial performance but a negative relationship with ESG performance. With the COVID-19 pandemic as the moderating variable, the results show that the pandemic period is not found to moderate the effect of the IC on financial performance and ESG performance. These results indicate that under normal conditions prior to the economic crisis caused by COVID-19, companies in Southeast Asia prioritised the use of IC to improve financial performance. Meanwhile, during the COVID-19 pandemic, companies in the region have not utilised IC to improve their financial and non-financial performance. The findings that IC affect ESG performance negatively need a serious attention amid the increasing awareness of sustainability and the expected role of corporate in the achievement of the Sustainable Development Goals (SDGs).