JAS (Journal of ASEAN Studies)

Does Terrorism Still Spread Fear to ASEAN’s Financial Market?

Suwinto Johan — 2024-06-03

The research aimed to examine the financial markets’ responses to terrorist attacks in Southeast Asia. Market reactions were a reflection of public sentiment. The market reaction was calculated using the stock index indicator and the currency exchange rate of the country relative to the US Dollar. The research employed a paired test to compare the period prior to and following the terrorist attack. The research used Wilcoxon Test to examine 38 terrorist attacks across four Southeast Asian nations: Indonesia, Thailand, Philippines, and Malaysia. The research concludes that the stock index exhibits both normal and abnormal returns between pre-incident and post-incident periods. Post-incident returns are higher than pre-incident returns. Stockholders are not required to sell their existing holdings in response to a terrorist attack. Between pre-incident and post-incident investors who do not invest in the capital or money markets, the foreign exchange market does not exhibit significant changes. Investors can profit by purchasing stock or foreign currency on the day of the incident or one day afterwards and selling it three days later.

Indonesia’s Spice-Based Gastrodiplomacy: Australia and Africa continents as the potential markets

Meilinda Sari Yayusman — 2024-06-13

The history of the spice route has left a legacy in Indonesia and the rest of the world. To date, Indonesia continues to be a major global player in the spice trade. Pepper, nutmeg, cloves, mace, and cinnamon were the country’s primary exports. Food may foster cross-cultural understanding, which can enhance international cooperation and engagement. Thus, foods rich in spices can be an asset for Indonesia’s gastrodiplomacy. In collaboration with other non-state actors and coordinated by Indonesia‘s Coordinating Ministry of Maritime and Investment Affairs, the Indonesian government has developed an ambitious gastrodiplomacy strategy called ”Indonesia Spice Up the World” (ISUTW). Despite possible hurdles, Australia and Africa could be potential markets for further implementation of ISUTW. The research aimed to answer the following questions: 1) To what extent has Indonesia promoted its spice-based gastrodiplomacy? and 2) What are the opportunities and challenges of Indonesia‘s spice-based gastrodiplomacy for the Australian and African markets? The research employed a mixed-method approach, including surveys to gather data about Indonesian cuisine businesses operating in Australia. This research incorporated a literature analysis, in-depth interviews, and focus group discussions with both state and non-state actors to strengthen the study, particularly in the context of the African market.

Sustainability Reporting and Corporate Performance: The Moderating Role of Corporate Internationalization

Josephine Tan-Hwang Yau — 2024-05-16

This study aims to investigate the relationship between sustainability reporting and corporate performance moderated by the internationalization level of the firms. The sample for this empirical study is collected from the Financial Times Stock Exchange (FTSE)100 firms listed on Bursa Malaysia for a period of nine years from 2011 to 2019. We examine the sustainability reporting based on the Global Reporting Initiative (GRI) standard with the G4 guideline, in which a content analysis method has been employed to obtain the Sustainability Reporting Index (SRI). The moderating variable for this study is the internationalization level, which is proxied by foreign sales generated. The findings demonstrate that sustainability reporting disclosure has no effect on corporate performance. However, internationalization improves corporate performance but serves no moderation role in the relationship between sustainability reporting and corporate performance. We conclude that there is no evidence to substantiate the claim that companies that disclose more in their sustainability reporting perform better, and this may be because Malaysian corporations are still new to non-financial reporting. We believe that although sustainability reporting is costly, sustainability reporting is able to enhance the reputation of firms in the international market. Sequentially, a highly internationalized firm with more sustainability reporting disclosures may bring wealth to the company in the long run.