Gadjah Mada International Journal of Business

Generalist CEOs and the Cost of Debt: Evidence from Indonesia

Novrys Suhardianto — 2025-12-31

This study examines the impact of generalist CEOs on the cost of debt in Indonesia, using data from public companies listed on the Indonesia Stock Exchange (IDX) between 2015 and 2021. Employing panel data regression with a random effects model, Coarsened Exact Matching (CEM), and Heckman's two-stage regression, the results indicate that companies with generalist CEOs incur higher debt costs. Additional analyses confirm that specialist CEOs are associated with lower debt costs, reinforcing the main findings. These results highlight how generalist CEOs, with their broad industry experience, may increase perceived financial risk, leading creditors to impose higher interest rates. From a practical perspective, these findings provide valuable insights for investors, corporate boards, and policymakers in aligning CEO selection processes with firm-specific financial objectives to mitigate risks. From a social perspective, the findings underscore the importance of addressing financial risks associated with generalist CEOs, particularly in Indonesia, where high information asymmetry and inefficient capital markets persist. Elevated borrowing costs could hinder corporate investments and broader economic growth. By integrating these findings into governance practices, this study contributes to sustainable development and financial stability in emerging markets.

Digital Nomadism: Remote Work Practices and Emerging Forms of Entrepreneurship

Muhammad Asif Khan — 2025-12-31

Digital nomadism has become a novel work style, transforming the global economy and jobs while providing entrepreneurial avenues for profit in a rapidly emerging digital economy. Digital nomadism promotes a new way of life that changes cultural attitudes towards and practices of traditional business; that is, workers are using technologies to facilitate remote work from anywhere in the world, even in traveling, rather than being fixed in one office. This mixed-method, exploratory research project investigates the emergence of digital nomadism and how it is redefining entrepreneurship through two inter-related studies: Study 1 focuses on the use of text mining, sentiment analysis, and social network modeling on a broad data layer; Study 2 includes 75 surveys and 28 interviews with entrepreneurs and freelancers about their observations and experiences. The results of this study show that digital nomadism is clustering around internet hubs, such as Southeast Asia, Eastern Europe, and Central locations in Latin America. The operations of digital nomad entrepreneurs and freelancers cluster around major themes such as freelance contracting, start-ups, selling online courses, co-working spaces, and lifestyle travel, all in industries founded on flexibility, creativity, innovation, or technology, education, sustainability, and networking.

The Influence of YouTube Influencer Attributes on Information Credibility and Purchase Intention in Malaysia: The Mediating Effect of Consumer Information Adoption

Nurashikin Nazer Mohamed — 2025-12-31

Consumers are placing greater trust in influencers for information about products and services, appreciating the authenticity of their personal experiences. In Malaysia, women are particularly drawn to beauty influencers on YouTube, trusting their recommendations for cosmetic products. This study seeks to examine the impact of influencer characteristics on the perceived credibility of information and how this, in turn, shapes Malaysian women's adoption of information and purchasing decisions regarding cosmetics. Data were gathered through an online survey utilising purposive and snowball sampling techniques, resulting in 393 responses available for analysis. Structural Equation Modelling (SEM) was conducted utilising IBM SPSS AMOS version 24.0. Findings indicate that the individual traits of influencers significantly influence the credibility of the information they provide. Additionally, information credibility is shown to have a direct effect on both the adoption of information and consumers’ purchase intentions, with information adoption further directly influencing purchase intentions. The study highlights the critical importance of information credibility in connecting influencer attributes with consumers’ willingness to adopt information and make purchases, offering actionable insights for marketers aiming to maximise the effectiveness of social media influencer collaborations.

Effect of Trade Surplus on External Debt in Developing Countries: Evidence from General-to-Specific Model

Abdul Aziz Karia — 2025-12-31

This paper examines the impact of trade openness towards external debt levels in low- and middle-income countries from 1980-2021. Using panel estimation of Fixed Effects (FE) and the General-to-Specific (GETS), the researchers segregated into Model 1 and Model 2, which Model 2 purposely to identify the interaction of international reserves as a potential medium to relate the impact of trade openness and external debt. The finding suggests that independent variables such as GDP growth rate, current account balance, and trade openness are highly significant variables that influence the external debt in the 50 LMICs. The researchers also found a robust interaction between trade openness and international reserves in determining external debt. The result confirms that the positive direct relationship of trade openness increases its coefficient from 0.10% to 0.14% after incorporating the interaction of international reserves in Model 2. The statistical evidence suggests that the inverse interactions of international reserves on trade openness significantly negatively affect external debt. Moreover, the result prevails, continuing to be positive and highly significant. Hence, the researchers can relate that an inverse impact of trade openness on international reserves has negatively affected external debt.

Determinants of Digital Financial Inclusion in Enhancing Financial Well-being Among Poor Households: Evidence from Malaysia

Ming Pey Lu — 2025-12-31

This study examines the factors influencing financial well-being and investigates the mediating role of digital financial inclusion among households with incomes below the national poverty line in Malaysia. The study used Partial Least Squares Structural Equation Modelling (PLS-SEM) and Importance-Performance Map Analysis (IPMA) to estimate the results. This study collected 1,171 responses and found that digital literacy, digital financial service infrastructure, and financial service providers were determining factors of digital financial inclusion. Financial service providers and digital financial inclusion showed a significant relationship with financial well-being. Mediation analysis showed that digital literacy, digital financial service infrastructure, and financial service providers indirectly affected financial well-being through digital financial inclusion. The results of the IPMA showed that financial service providers and digital financial inclusion were the most important factors in achieving financial well-being. Furthermore, financial service providers were the key factor of digital financial inclusion in high-poverty states, while digital literacy was a key factor in moderate- and low-poverty states. The study offers insights for policymakers working towards an inclusive society and provides financial service providers with information to design services that meet the needs of poor households. This study also offers important implications for other developing countries in Southeast Asia that share similar socio-economic and digital challenges.