Factors contributing to successful publi

2014 Asia Conference on Economics & Business Research (ACEB 2014) CONFERENCE PROCEEDINGS NOV 13 - 14, 2014 SINGAPORE HOSTED BY ASIA PACIFIC INTERNATIONAL ACADEMY WHOLLY OWNED SUBSIDIARY OF AVENTIS SCHOOL OF MANAGEMENT www.academy.edu.sg academic@aventis.edu.sg Copyright ©APIA Publications 2014 Asia Conference on Economics & Business Research – Singapore Conference Proceedings ISBN: 978-981-09-0089-2 Publisher: Asia Pacific International Academy November 2014 The authors of individual papers are responsible for technical, content, and linguistic correctness APIA Asia Pacific International Academy Aventis School of Management is a Leading Graduate School dedicated to the development of professionals and business leaders Aventis is a member of the European Foundation for Management Development (EFMD), European Council for Business Education (ECBE), Executive MBA Council and United Nations (UN) Global Compact partnership Through our close collaboration with professional bodies including the Chartered Institute of Marketing (CIM UK); American Association for Financial Management (AAFM), Aventis qualifications are industry driven and recognised by professional bodies internationally Asia Pacific International Academy (APIA), a subsidiary of Aventis School of Management, was found in 2010 with the purpose of promoting academic research and intellectual development of researchers, academicians and professionals from various institutions and across different countries in the Asia-Pacific region and beyond through academic conferences and executive training We strive to organise the best academic conferences in the Asia-Pacific region and beyond On behalf of all APIA conference executives, I sincerely thank you for your participation and look forward to seeing you at our conference Have a great day! Tan Lee Ming Conference Secretariat ACEB ADVISORY BOARD  Associate Professor Evan Lau, Ph.D International Economics Universiti Putra Malaysia, Faculty of Economics and Business, Universiti Malaysia Sarawak, Managing Editor of International Journal of Business and Society (IJBS)  Prof Dan Levin, Ph.D, Wharton Business School, University of Pennsylvania, Director (Academic Affairs) Graduate Programs Aventis School of Management  Prof Luis Hall, Ph.D in Finance NYU  Prof Rajah Rasiah, Ph D Cambridge University, Faculty of Economics and Administration, University of Malaya  Dr Zulnaidi Yaacob, Ph.D Accounting, Universiti Utara Malaysia, Senior Lecturer at Universiti Sains Malaysia  Prof Ramayah Thurasamy, Faculty of School of Management, Universiti Sains Malaysia  Prof Dr László Józsa, Széchenyi István University  Dr Simonetti Biagio, University of Sannio, Italy  Roberto Janelli, University of Sannio, Italy  Prof Dr Mansor H Ibrahim, PhD in Economics Washington University, USA, Professor of Finance & Econometrics, Finance and Accounting Department, INCEIF (International Centre for Education in Islamic Finance)  Dr Chor Foon TANG, Ph.D in Economics University of Malaya, Senior Lecturer at Centre for Policy Research and International Studies (CenPRIS), Universiti Sains Malaysia  Dr Navid Mollaee, MBA Lecturer at University of Tehran, Faculty of Economics, University of Tehran, Iran  Dr AFM Kamrul Hassan, Ph.D in Economics, Curtin University, Australia, Lecturer (Finance) School of Management and Governance, Murdoch University, Perth, WA, Australia ACEB OFFICERS Samuel Teo General Manager Aventis School of Management, Singapore E-mail: samuel@aventis.edu.sg Tan Lee Ming Conference Manager Asia Pacific International Academy, Singapore E-mail: leeming@aventisglobal.edu.sg Nicodemus Koh Conference Officer Asia Pacific International Academy, Singapore E-mail: academic@aventis.edu.sg Table of Contents The Relationships Among Four Factors and Turnover Intentions on Different Levels of Perceived Organizational Support ThanawatdechThirapatsakun Ph.D, Chanongkorn Kuntonbutr D.B.A., Panisa Mechinda Ph.D (Thailand) Is Natural Resources still an Important Determinant of Economic 29 Growth? Or It has Already been Replaced by Openness and Innovation? Zhijun Gao (USA) Impact of Service Quality and Trust on Customer Patronage Decision: 49 Testing the Moderating effects of Corporate Image Muhammad Sabbir Rahman, Osman Mohamad, Fadi Abdel Muniem Abdel Fattah (Malaysia) Taxes management in corporate financial strategies in European Union 71 countries The case of Poland Prof Teresa Famulska Ph.D., Bożena Ciupek Ph.D., Jan Kaczmarzyk Ph.D (Poland) Sales Force Attitudes on Sales Practices – A Study of Life Insurance 99 COorporation in India, Machilipatnam Division – Andhra Pradesh, India Prof Naladi Vijaya Ratnam, Dr Dokka Jagan Mohan Rao, Mr Pallekonda Srinivasa Rao (India) Technology Innovation Efficiency of Traditional Industries in Jiangsu Province Li Peng, Hu Han-Hui (China) 120 Factors contributing to successful Public Private Partnerships (PPPs) 136 in Road Infrastructure Investment in Vietnam: Stakeholder’s Perspective Do Trung Nguyen, Dr Christine Smith, Dr Matthew Manning, Dr DucTho Nguyen (Australia) ECONOMIC TRANSFORMATION AND URBANIZATION OF INDIA 161 Initiatives for Sustainable Development Vinod Nakra (India), Prema Nakra (USA) Impact of macroeconomic indicators on expectations of equity risk 178 premium in CEE private equity markets Roman Cibera, Tomas Krabec (Czech Republic) 10 Examining the Impact of FDI on Social Development in the ASEAN 192 Region Sridevi Narayanan (Malaysia) 11 Changing professional identities in the English National Health Service 204 (NHS) acute care: Institutional logics and healthcare commissioning Zlatinka Gougoumanova (Singapore), Pinar Guven-Uslu (United Kingdom) 12 The Relative Profitability of Family Dominated Banks in Bangladesh 223 Tasmina Mahbub, Kate Barker, Kent Matthews (United Kingdom) 13 The role of venture capital for entrepreneurship in less developed economies Thomas Straub (Switzerland), Stefano Borzillo (France), Alexandru Caragea, Anon Jinaru, Roxana Voicu-Dorobantu (Romania) 238 14 Dividend policy and factors that affect dividend policy in Vietnam stock market Hai Nguyen Viet, Tai Khuat Thai, Van Ta, Thuy Anh Tong, Nguyet Anh Nguyen, Ngoc Hoang 259 ACEB Conference Proceedings www.academy.edu.sg The Relationships Among Four Factors and Turnover Intentions on Different Levels of Perceived Organizational Support Thanawatdech Thirapatsakun Rajamangala University of Technology, Thanyaburi, Thailand Chanongkorn Kuntonbutr Rajamangala University of Technology, Thanyaburi, Thailand Panisa Mechida Rajamangala University of Technology, Thanyaburi, Thailand ACEB Conference Proceedings www.academy.edu.sg Graph 2-7 Dividend payout ratio at HNX in 20092013 16 14 SL công ty 12 10 Năm 2009 Năm 2010 Năm 2011 Năm 2012 Năm 2013 0% - 20% 20% - 40% 40% - 60% 60% - 80% 80% - 100% >100% Dividend payout ratio The graph shows us the dividend rate through years is stable at the level of 0-20% Almost companies pay at the range of 20-40% and 40-60% It appears the companies which has the dividend rate at 80-100% (20010) but rarely Remarkably that the number of companies pay at 100% over the one compared with VNX Especially, in 2012 there are companies pay over 100% 275 ACEB Conference Proceedings www.academy.edu.sg Graph 2-8 Dividend yield at HNX in 2009-2013 25 SL Công ty 20 Năm 2009 15 Năm 2010 Năm 2011 10 Năm 2012 Năm 2013 0% - 5% 5% - 10% 10% - 15% 15% - 20% 20% - 25% 25% - 30% >30% tỷ suất cổ tức The dividend yield leveraged from 4.76% up to peak in 2011 with 10.48% before slide down 5.62% in 2013 The graph illustrated that the companies which pay at 0-5% take account mostly, form 21 companies (2009) then going down 15 companies (2013) The dividend yield from 5-10% is recognized for companies in 2009, then increasing in 2013 At the yield over 20%, there is only one company or no one paying at such high rate 2.2 ANALYSE THE FACTORS AFFECTING THE DIVIDEND POLICY OF 60 VIETNAM LISTED COMPANIES: 2.2.1 Correlations between Dividend rate, inflation rate, EPS and interest rate: Theoretically, high inflation economy requires enterprises to raise their capital and cash in hand, therefore push up the level of retained earnings This leads to dividend reduction From investors’ perspective, high inflations means unsustainable development and higher risk They take this under great consideration when investing in real estate or gold rather than stock, especially when there is dividend cut 276 ACEB Conference Proceedings www.academy.edu.sg In addition, high inflation might result in other macro fluctuations like: decline in foreign investment for fear of risk or of high bank interest rate Table 2.4 indicates the correlation between inflation and bank interest rate (R= 0.901597) Reality proved that during 2008, high inflation rate associating with contractionary fiscal policy push the interest rate to approximately 20% In that case, enterprises faced difficulties in external financing Thus, many chose to remain dividend rate reasonable enough to attract investors That may lead to some consequences and ideally, high inflation rate goes with lower dividend policy to ensure companies’ sustainable development Practically, inflation- interest rate correlation has been proven based on the most 60 popular enterprises on Vietnam stock exchange and Vietnam CPI index from 2009 to 2013 on tables below Table2.4.Correlations between factors (EPS, Dividend rate, Interest rate, Inflation, Lag1 and Growth rate of profit) Source: authors summarize Table2.5: Average dividend rates on exchanges and national CPI from 2009 to 2013 2009 2010 2011 2012 2013 CPI 6.52% 11.75% 18.13% 6.81% 6.04% Average dividend rate on HNX 7.78% 10.84% 7.49% 8.02% 6.57% Average dividend rate on VNX 7.2% 12.63% 11.37% 10.66% 11.59% Source: authors summarize 277 ACEB Conference Proceedings www.academy.edu.sg Table 2.4 shows the correlation between dividend rate and inflation rate is 0.05412 This figure is positive and less than 0.3, which implies the weak correlation In the past years, Vietnam witnessed high CPI (all above 6%), especially in 2010, the CPI was 11.75% and 18.13% in 2011 The according average dividend rate on HNX was high in 2010 (proportional to CPI) but lower to 7.49% in 2011 (adversely proportional) Meanwhile, the average dividend rate on VNX both showed proportional correlation with CPI: 11.59% and 12.63%, in turn Therefore, reality in Vietnam mostly proved the opposite way of paying dividend: high inflation leads to high dividend rate Besides inflation, this research also touches the correlations between dividend rate and other factors: EPS, interest rate, Table presents the correlation between dividend rate and EPS equals 0.417039 For interest rate factor, the research shows the correlation between dividend rate and interest rate was very weak (correlation= 0.0361819) For those reasons, it is implied that the dividend rate has the main connection with EPS, and other correlations are still weak 2.2.2 Econometric models for dividend rate rationale: Econometric models are constructed to find the optimal model with highest level of explanation for dividend rate rationale The model applies R and R Square references: If R < 0,3If R Square < 0,1 If 0,3 ≤ R ≤ 0,5 If 0,1 ≤ R Square ≤ 0,25 Medium correlation If 0,5 ≤ R ≤ 0,7 If 0,25 ≤ R Square ≤ 0,5 Relatively close correlation If 0,7 ≤ R ≤ 0,9 If 0,5 ≤ R Square ≤ 0,8 Close correlation If 0,9 ≤ R 0,8 ≤ R Square Very close correlation If Low correlation 278 ACEB Conference Proceedings www.academy.edu.sg Econometric model 1: Regression analyses for variables: Dividend rate and Lag1 P value of this model is very small (