Entrenched Board in New Public Firms： An Empirical Study of Chinese IPOs

This study empirically investigates the impact of managerial entrenchment on firm financial performance of Chinese firms initial public offerings （IPOs）. Using 142 firms listed in the Shenzhen Stock Exchange （SZSE）, which was collected from the Guotaian Research Service Center （GTA-RSC） databases, this study uses two proxies to measure firm performance and three proxies to measure managerial entrenchment. The two proxies for firm performance are Tobins＇ Q and return on assets （ROA）, and the three proxies for managerial entrenchment are entrenchment 1, entrenchment 2, and entrenchment 3. These three entrenchment proxies are derived from the principal component analysis （PCA）. Though previous studies of managerial entrenchment and firm performance variables suffer from endogeneity, with respect to the corporate governance it is unclear as to which variables are endogenous and which are exogenous. This study confirms that the data are linear and no endogeneity issue should be address in this study, but only heteroskedasticity, non-normality for Tobins＇ Q are a problem, therefore, the regression method employed for Tobins＇ Q is the generalised least square （GLS） and the ordinary least square （OLS） between estimators for ROA. The regression result for Tobins＇ Q reveals that managerial entrenchment is negatively impact on firm performance. The results are in contradiction to the stewardship theory for new firms whereas the managerial entrenchment for new firms is positive. Furthermore, only one entrenchment proxy yields a significant coefficient. In conclusion, the negative results of entrenchment proxies were caused by the different institutional structures and legal systems which are the Chinese corporations that are still largely owned and controlled by a state and hence the centralised state controlled was responsible for all managerial actions.     

Halal Purchase Intention Among the Singaporean Muslim Minority

Muslim consumers’ awareness toward halal foods and products has been increasing. The halal concept becomes consumers’ vital concern as it covers wide areas of consumption, though one might perceive it as only a food-related issue. Given this background, this article aims to investigate the factors that influence consumers’ intention to purchase halal-certified foods and products. By using Ajzen’s theory of planned behavior (TPB) as a theoretical framework, this research employed a quantitative survey with a sample of 332 Muslim consumers living in Singapore to examine Singaporean Muslim preferences in purchasing halal foods and products. Data gathered from the survey were then explored and analyzed. Multiple regression analysis results indicate that all TPB variables have a positive and significant influence on the intention to purchase halal-certified products among the Muslim minority in Singapore.     

Indonesia's Debt-for-Development Swaps: Past,Present, and Future

This article systematically reviews recent debt-for-development swaps in Indonesia, the only debtor country where the number of such swaps warrants their being considered as a deliberate government debt-relief policy and development finance strategy. We show that the 11 swaps Indonesia has signed with its bilateral creditors since 2002 have performed rather erratically across four criteria: an increase in resources at the debtor country or government budget level or both; an increase in resources for intended sector purposes; whether, taken together, these swaps ease debt burdens; and the extent of their alignment with government policy and systems. We find little evidence of learning on the Indonesian side. We believe that Indonesia can take a more proactive stance in negotiating the economic terms underlying its debt swaps, and we suggest concrete ways for it to do so.     

Inhibitors to host community participation in sustainable tourism development in developing countries

The involvement of host communities (or destination residents), particularly in developing countries, is critical to the success of tourism development and to the creation of a “Just Destination”. This paper investigates host community perceptions about obstacles to their participation in tourism development in Lombok, Indonesia, providing new insights into institutional influences on tourism opportunities and issues. Purposive and snowball sampling techniques targeted separate groups of destination residents who live in a developed tourism destination, a less developed tourism destination, a remote rural village far away from tourism destinations, as well as a group of university students. Data were collected through in-depth interviews, qualitative questionnaires and observation, and were analysed using content analysis. Results show three main institutional factors inhibit host community participation in tourism: tourism agencies, private sector providers and tourism infrastructure, and perceptions of the negative impacts of tourism. The underperformance of state tourism agencies and private sector providers resulted in a lack of tourism infrastructure and limitations on host community opportunities to participate in tourism development and businesses. The findings suggest the need for improvement in the training of state tourism agency employees, better coordination among government agencies, and improved education and training for tourism operators.