Obstacles to Economic Freedom Affecting Micro, Small, and Medium Enterprises (MSMEs) in Southeast Asian Countries

Obstacles to economic freedom such as trade obstacles, finance obstacles, taxes, and corruption affect the ability of micro, small, and medium enterprises (MSMEs) to maximize firm performance. Existing empirical studies investigating the effect of specific MSME-level obstacles to economic freedom are scarce in Southeast Asian countries. Therefore, this paper focuses on analyzing and comparing the effects of these obstacles to economic freedom on the performance of MSMEs in Indonesia, Vietnam, the Philippines, and Malaysia using firm-level data from the 2015 World Bank Enterprise Survey. The methodology utilizes an ordinary least squares regression, and endogenous treatment effects regression, in determining which obstacles of economic freedom significantly affect MSME performance. Overall, it was found that trade obstacle is positively correlated to firm performance in all the countries except in Vietnam, whereas finance obstacle is negatively correlated to firm performance in all the countries except in Malaysia, whereas results were negative for taxes in the Philippines and corruption in Vietnam

Small Fishes, Sharp Hooks: Obstacles to Economic Freedom Affecting Micro Small, and Medium Enterprises (MSMEs) in Southeast Asian Countries

Obstacles to economic freedom such as trade obstacles, finance obstacles, taxes, and corruption affect the ability of micro, small, and medium enterprises (MSMEs) to maximize firm performance. This policy brief is based on the observations made regarding the relationship of these obstacles to economic freedom in Southeast Asian countries Indonesia, Vietnam, the Philippines, and Malaysia. This will take into account the recent economic environment of each country

The mediating effect of financial restatement on corporate governance and investor confidence of publicly listed firms in the Philippine Stock Exchange index

The Philippine Stock Exchange Index (PSEi) represents the top actively traded stocks in the Philippines, playing a significant role in the country\u27s economy. Safeguarding these companies from risk by improving investor relationships is therefore important. This can be done by implementing good corporate governance. The presence of financial restatements affects investor confidence as the correction of errors may be viewed either positively or negatively by stockholders, and is influenced by corporate governance through internal controls. No specific study on the matter has isolated the effect of such, particularly in firms listed under the PSEi; hence, this is the research gap this study aims to fill. The mediating analysis utilized Structural Equation Modeling (SEM) with the use of panel data acquired from the thirty publicly listed firms in the PSEi from the period 2014 to 2021. Corporate governance was measured using the Governance score derived from the ESG Score. Financial restatement occurrences were extracted from the PSE EDGE portal, while investor confidence was based on the Investor Sentiment Index (ISI), derived from historical stock prices. The findings of the study revealed that financial restatements do not mediate the relationship between corporate governance and investor sentiment, possibly due to less sophisticated retail investors in the Philippines, where corporate governance implementation may be inadequate, and financial restatements have minimal impact on firm value and investor sentiment. Despite insignificant statistical findings, the study yields valuable insights for PSEi companies, regulatory bodies, investors, and future researchers. Future researchers are advised to broaden the study\u27s scope with larger samples, additional variables, and industry-specific investigations to deepen the understanding of corporate governance, financial restatement, and investor confidence. Key words: Corporate Governance; Financial Restatements; Investor Sentimen

Obstacles to economic freedom affecting micro, small, and medium enterprises (MSMEs) in Southeast Asian countries

Obstacles to economic freedom such as trade obstacles, finance obstacles, taxes, and corruption affect the ability of micro, small, and medium enterprises (MSMEs) to maximize firm performance. Existing empirical studies investigating the effect of specific MSME-level obstacles to economic freedom are scarce in Southeast Asian countries. Therefore, this paper focuses on analyzing and comparing the effects of these obstacles to economic freedom on the performance of MSMEs in Indonesia, Vietnam, the Philippines, and Malaysia using firm-level data from the 2015 World Bank Enterprise Survey. The methodology utilizes an ordinary least squares regression, and endogenous treatment effects regression, in determining which obstacles of economic freedom significantly affect MSME performance. Overall, it was found that trade obstacle is positively correlated to firm performance in all the countries except in Vietnam, whereas finance obstacle is negatively correlated to firm performance in all the countries except in Malaysia, while results were negative for taxes in the Philippines, and corruption in Vietnam