Determinants of Financial Sustainability in Emerging Asia

This project investigates the factors influencing financial sustainability in emerging Asian economies. It identifies internal factors such as interest rates, political stability, quality of education, and infrastructure, as well as the moderating role of government rules and regulations and the mediating role of executive remuneration and law and order. The problem statement highlights the deceleration of growth in these countries due to financial instability, compounded by global economic conditions and internal challenges. The research aims to address the gap in the literature by including external factors like corruption and economic environment. Research questions focus on identifying the most significant internal factor, the association of resource availability and executive remuneration, and the role of sectoral analysis. The project outlines research objectives to develop a sustainable financial system, recommend policy frameworks, and identify lessons learned from various perspectives of emerging Asian countries. Hypotheses are formulated to test the relationships between political instability, interest rates, quality of education, infrastructure, and financial sustainability. The methodology involves both primary and secondary data analysis, with a survey questionnaire designed to gather data from managerial positions across Asian countries, and regression analysis to assess the significance of parameters affecting financial stability. Desklib provides access to this and many other solved assignments to help students excel.

Running head: FINANCE
Finance
Name of Student:
Name of University:
Author’s Note:

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Table of Contents
Title for Dissertation........................................................................................................................2
Variables Selected for the research Study.......................................................................................2
Problem Statement...........................................................................................................................3
Research Gap...................................................................................................................................5
Research Questions..........................................................................................................................5
Research Objectives.........................................................................................................................5
Research Hypothesis........................................................................................................................6
Survey Questionnaire.......................................................................................................................9
Source: Open.uct.ac.za., (2018).....................................................................................................11
References and Bibliography.........................................................................................................12

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Title for Dissertation
Identifying the factors that affect the financial sustainability in the emerging countries of
Asia
Variables Selected for the research Study
Dependent Variable
 Financial Sustainability
Independent Variable
Internal Factors
 Interest Rate
 Political Stability
 Quality of education
 Infrastructure (Loannou & Serafeim, 2017)
Moderator
 Government rules and regulations
Mediator Variable
 Executive Remuneration
 Law and order situation

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Quality of education
Political Instability
Interest Rate
Infrastructure
Law and order
situation
Financial
Sustainability
Government
rules and
regulations
IDVMediator
Variable Moderator
DV
Executive
Remuneration
Research Framework
Figure: Research Framework for Corporate Financial Sustainability
(Source: As stated by the Author)
Problem Statement
The scope of evidence that is seen in the development in the emerging and developing
economies within Asia is considered as a major contributor to the global growth (Davis & Lastra,
2018). However, due to several types of internal factors the growth in emerging Asian countries
such as China has been hit with global shock and it to risk and financial stability. Some of the
most evident problem due to financial instability within the country is depicted with deceleration

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towards the growth of 6%. Therefore, China along with other emerging countries of Asia poses a
greater scope of risk pertaining to rebalancing and global economic and financial conditions. In
addition to this, a slowdown in the world has significantly weakened the commodity prices and a
led to tighter control on credit conditions (Wry & Zhao, 2018).
The problem associated to the financial sustainability is mainly depicted to be influenced
with multiple factors create a barrier for development among the Asian countries. In addition to
this, East Asian emerging country such as Taiwan has faced similar problems in the
technological sector which are considered due to insufficient availability of fund and lack of
investors’ interest due to several geopolitical issues experienced among the high-tech industries
(Borin et al., 2018). The environmental concerns associated with the financial stability in Taiwan
has been included with problems relating to economic, environmental and social issues thereby
affecting the financial steadiness. Some of the main discourse of the study would identify the
various types of internal factors responsible for causing disruption in the financial stability of the
emerging Asian countries (Rezaee, 2018). Some of the other scope of studies has shown that the
factors affecting financial sustainability in the emerging countries are evident with issues relating
to grant seeking, investment and fundraising.
The key issues that have led to the development of this paper have mainly been due to the
problems that are related to the variables that have been taken into consideration in this paper.
There have been instances when it is seen that many organizations have been incompetent in
maintaining an effective managerial structure and this has directly had an impact on the financial
performance and accordingly affected the financial sustainability of the companies. Gardini &
Grossi, (2018) addressed that ineffective board composition even leads to various issues that
have extensive impact on the decision making process of the business, which directly has an
impact on the operational process. There have been other instances in which numerous
companies have faced issues with respect to the process of financial sustainability and inefficient
management that has led to serious impact on the financial performance (Manes Rossi et al.,
2018). These have been several issues that have led to the creation of the problem statement and
therefore the aspects that have not been addressed has been one of the critical factors because of
which research on this topic has been undertaken (Adhikary, 2018).

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Research Gap
The primary gap in the present literature is considered with the inclusion of external
factors such as corruption, Economic Environment, Market Environment and Social
Environment to depict the problems of associated to the financial stability in the emerging
Asian countries such as China, Taiwan, Pakistan and Singapore. Some of the relevant literatures
has been seen with the study on the “Identifying the Factors that Affect the Financial
Sustainability in Baluchistan Province of Pakistan”. Some of the other relevant study on
external factors include “Factors that Affect Financial Sustainability of Microfinance
Institution- Aderaw Gashayie” and “Factors Influencing Financial Sustainability of Non-
Governmental Organizations (Reguera-Alvarado et al., 2017): A Survey of Ngos in Nakuru
County, Kenya Kerine Lindah Omeri”. The angle in accordance to financial sustainability and
the missing links in relation to the connected variables are existent in several previous
researches because of the fact that the researchers have been unable to determine the positive or
the negativity of their relationships and therefore present researches would look to determine the
same. It is seen that the external factors that have been highlighted have been the gaps that has
not been addressed in the literature. The explanation of the external factors as well as the
internal factors in a theoretical as well as empirical manner is helpful in the attainment of a
research that would be helpful in addressing the topic (Post & Byron, 2015).
Research Questions
The main form of the research questions formulated for the study are stated below as follows
 What is the most significant internal factor affecting the financial sustainability?
 How is resource availability and Executive Remuneration associated to the corporate
financial sustainability?
 What is role of sectoral analysis such B2B/B2B sectors in in terms of the factors affecting
financial instability?
Research Objectives
The research objectives wet of the research study is listed below as flows:
 Developing a sustainable financial system for the emerging countries in Asia

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 Recommending a policy framework associated to the efficient functioning of the
proposed financial system
 Identification of the fundamental reasons which are seen to be associated to the
provisional financial sustainability and lesson to be learned from the various perspectives
of the emerging Asian countries
 To study the sustainability perspectives in the emerging Asian countries and recommend
for better practices by identification of the loopholes of the present policies
 To examine the most significant internal factor affecting financial sustainability in
business
Research Hypothesis
Hypothesis (H1): There is a relation ascertained with the political instability and financial
sustainability in the emerging Asian countries
Hypothesis (H2): There is a relationship between interest rate and the financial stability in the
emerging Asian countries
Hypothesis (H3): There is a relation among the quality of education and the financial stability
and stability in the emerging Asian countries
Hypothesis (H4): There is a relationship of the infrastructure within the organizations and
financial sustainability among the emerging countries in Asia

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RQ and RO Alignment with hypothesis
RQ RO Hypothesis
1. What is the most significant
internal factor affecting the
financial sustainability?
To examine the most
significant factor affecting
financial sustainability in
terms of “Clear Vision and
Leadership, Organizational
Capacity, Communications
and Strategic Financing”
There is a positive
relationship among the
perceived variables
2. What is the role of Resources
Available and Executive
Remuneration in term of the
financial sustainability?
Identification of the
fundamental reasons which
are seen to be associated to
Clear Vision and Leadership
and communications to bring
about financial sustainability
There is a positive role
of internal factors such
as Clear Vision and
Leadership,
Organizational Capacity,
Communications and
Strategic Financing

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Measurement of the variables
The measurement of the selected independent variables will be mainly done with the
conduction of both primary data analysis. Secondary data analysis can even be undertaken
however, primary data would provide fresh data from the aspect of the management employees
who are working in companies in the selected countries and thereby better results can be
attained. It needs to be understood that the measurement of the various types of the variables
such as managerial structure, earnings management, board composition, financial performance
and firm size will be done with the help of primary data collection (Petrenko et al., 2016). The
sample size for the conducted research will be considered with 100 respondents across Asian
countries such as China, Taiwan, Pakistan, Singapore and India. The majority of the responses
will be taken from the individuals in managerial positions the aforementioned countries. The
measurement of the factors would be considered with the use of regression analysis. This
approach would be conducive in assessment of the most significant parameters affecting the
financial stability across these countries (Khan, Serafeim & Yoon, 2016).

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Survey Questionnaire
Survey Form
Survey on "Factors affecting financial sustainability among Asian Enterprises"
"We appreciate your willingness to participate in the survey"
Name:
Question Please tick on the appropriate box
2 1
Gender Male Female
5 4 3 2 1
Age 18-20 15-20 26-32 32-50 <50
2 1
Place of origin Asian Others
5 4 3 2 1
Employment Status Student Self
Employed
Employed
Under
Company
Business Other
5 4 3 2 1

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1. Financial Sustainability
has a relationship with the
managerial structure
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
2. Earnings Management
influences Financial
sustainability
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
3. Financial Sustainability is
affected by board
composition within the
organization
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
4. Financial Performance
influences Financial
sustainability Strongly
Agree Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
5. Financial sustainability
planning effectively defines
firm size of the companies
Strongly
Agree Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
6. Financial sustainability
planning effectively defines
earnings management
Strongly
Agree Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
7. Financial sustainability
planning effectively defines
the managerial structure of a
company
Strongly
Agree Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1

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8. Financial sustainability
planning effectively defines
financial performance
Strongly
Agree Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
9. Resources that are
available have an impact on
the internal factors and
financial sustainability?
Strongly
Agree Agree Neutral Disagree Strongly
Disagree
5 4 3 2 1
10.Executive Remuneration
influence the internal factors
and financial sustainability Strongly
Agree Agree Neutral Disagree Strongly
Disagree
Source: Open.uct.ac.za., (2018)

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