...Beatrice Lim, Catherine Jikunan and Lo May Chiun (2012) Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Journal of Contemporary Eastern Asia Vol. 11, No. 1: 43-56 Journal abbreviation: J. Contemp. East. Asia Stable URL: http://eastasia.yu.ac.kr/documents/Fumitaka_11_1.pdf www.JCEA-Online.net Open Access Publication Creative Commons License Deed Attribution-No Derivative Works 3.0 Journal of Contemporary Eastern Asia, Volume 11, No.1: 43-56 http://dx.doi.org/10.17477/jcea.2012.11.1.043 Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Fumitaka Furuoka, Beatrice Lim, Catherine Jikunan and Lo May Chiun The paper chooses the “Asian Financial Crisis” as a case study to examine its impact on Malaysian economy and describes how Malaysian government responded to the crisis. It also focuses on the Asian financial crisis’ impact on the employment of banking sector in Malaysia. In the finance, insurance, real estate and business service sector, a number of 6,596 workers were retrenched. Banks were forced into mergers and acquisition as well as downsizing, trim lean, organizational changes and introduction of new technologies. Excess workers were offered a “voluntary separation scheme.” These retrenched workers became the urban poor facing high cost of living and no opportunity for jobs as there is no safety net provided. 1. Introduction The economic meltdown began in Thailand in July 1997 and spread to...
Words: 7422 - Pages: 30
...journal. Please complete a separate form relating to each journal for which you wish to make a submission of this type. Journal Title: MALAYSIAN ACCOUNTING REVIEW QC1. FIELD of RESEARCH (FoR) PANEL to which this request is directed (tick one box only): 0806 Information Systems 1401-1499 Economics 1501 Accounting 1502 Finance 1503 Management 1504-07 Marketing/Tourism/Logistics 180105/1801025 Business and Taxation Law QC2. WHAT ABDC 2013 RATING DO YOU PROPOSE FOR THIS JOURNAL? A* A B C QC3. WHAT ABDC 2010 RATING WAS THIS JOURNAL ASSIGNED? A* A B C QC4. WHAT ERA 2010 RATING WAS THIS JOURNAL ASSIGNED? A* A B C not applicable QC5. NOMINATE “THE BEST” COMPARATOR JOURNAL (journal from the ABDC 2010 list that is most similar in research quality): ASIAN REVIEW OF ACCOUNTING QC6. JOURNAL INFORMATION Editor’s Name: PROF. DR NORMAH OMAR Web Address: http://ari.uitm.edu.my/mar.html Institution: UNIVERSITI TEKNOLOGI MARA NATURE OF SUBMISSION QC7. Primary submitter type (tick one box only) Higher Education Institutional Submission (e.g. formal submission from Business Faculty/School) Peak Body Submission (e.g. AFAANZ, ANZAM) Individual Submission QC8. Primary submitter: PROF. DR SARDAR M. N. ISLAM Institutional Affiliation: Professor of Business, Economics and Finance; College fo Business, Victoria University, Australia QC9. Are there other signatories to this submission? Yes No If...
Words: 3679 - Pages: 15
...IMPACT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE - AN EMPERICAL STUDY ON THE INDIAN BANKING SECTOR. Abstract: Purpose: Present study makes an attempt to examine the impact of intellectual capital on financial performance of firms based on a sample consisting of 12 Indian banking companies which constituted the CNX Banking index of NSE during 2012-13. More specifically, it seeks to examine the impact of the IC represented by VAIC and the value added, on corporate financial performance measured by return on assets, earnings per share, and return on equity. Design/methodology/approach: In this study VAIC™ is considered as a key valuation model for measuring the IC performance of Indian Banking Companies. Capital employed, human capital and structural capital are used as components of intellectual capital and return on assets (ROA), return on equity (ROE) and Earning Per Share (EPS) indexes are used as criteria of financial performance. The value of three performance measures i.e. Return on Equity (ROE), Return on Assets (ROA), and Earning Per Share (EPS) are obtained from the annual reports of respective banks, whereas the values of VAIC and Value added are computed using appropriate formula and the ranking is made. The companies having highest value is ranked 1, next highest is ranked as 2, and so on. Next, a bar chart is prepared using the computed values of HCE, SCE, CEE representing various components of intellectual capital efficiency which constitute the VAIC...
Words: 6311 - Pages: 26
...banks that belongs to two different sectors: a) Islamic Banks (IBs) and b) Traditional Banks (TBs). The study concentrates on the pre and post 2008 financial crisis with an aim to test if there are any significant differences in performance between the two sectors. The study applies the MANOVA techniques to analyze the financial secondary data for only publicly traded banks in the same region. The findings of the study show that there is a significant difference between the two sectors in 2007 and 2009 and there are no significant differences in 2008, which indicates the effect of the crisis on both sectors. IBs outperform TBs in 2007 and TBs outperform IBs in 2009. This result indicates the spread of the crisis to the real economy where IBs usually operate. INTRODUCTION Forty years ago Islamic Finance was virtually an unknown system; interestingly it has expanded to become a distinctive and fast growing segment of the International Financials markets. With a growth rate that ranges from 15% to 20% (EL- Qoroshy 2005). Islamic Finance in general and Islamic banking in specific become main players in the financial world. According to the IMF survey (2010) the total capital managed under Islamic Finance systems was estimated to be $820 billion at the end of 2008. More than 200 Islamic Banks operate in over than 70 countries concentrated in the MENA region and many western countries (Hassan & lewis, 2007). Obviously, the Islamic Banking sector attracts more attention during the financial...
Words: 7407 - Pages: 30
...Determinants of Banking Instability in Malaysia Final Year Project Proposal – April 2015 Submitted By: Name & Roll Number Submitted To: Supervisor’s Name: This proposal is submitted to SEGi UNIVERSITY on 10/04/15, in partial fulfillment of the requirement for the degree BBM. EXCLUSIVE RIGHTS ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior consent of the author. DECLARATION I hereby declare that: * This undergraduate research project is the end result of my own work / research and that due acknowledgement has been given in the references. * No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university. * The word count of this research proposal is 10,276 words. Name of the Student Signature Date ACKNOWLEDEMENTS I would like to thank my Final year project’s supervisor [NAME], who has been an inspiration and provided me information regarding banking instability, which proved to be very useful in completing this project. I also appreciate the hard work and efforts of my friends and former colleagues who has provided me with useful information / data which helped me choose this topic. PREFACE This research paper is submitted in partial fulfillment of the requirement for Bachelor of Business Administration (HONS) Banking and...
Words: 10685 - Pages: 43
...DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE MALAYSIAN MANUFACTURING SECTOR NOR AMIRA IZZATI BINTI MOHD IKHWAN 2011362629 NUR HASIDAH BINTI HUSSEIN 2011391659 BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA JOHOR. DECEMBER 2013 TITLE PAGE DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE MALAYSIAN MANUFACTURING SECTOR NOR AMIRA IZZATI BINTI MOHD IKHWAN 2011362629 NUR HASIDAH BINTI HUSSEIN 2011391659 Submitted in Partial Fulfillment Of the Requirement for the Bachelor of Business Administration (Hons) Finance FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA, JOHOR. DECEMBER 2013 i BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SEGAMAT, JOHOR DECLARATION OF ORIGINAL WORK NOR AMIRA IZZATI BINTI MOHD IKHWAN 2011362629 NUR HASIDAH BINTI HUSSEIN 2011391659 We are here by, declare that, This work has not previously been accepted in substance for any degree, locally or overseas and is not being concurrently submitted for this degree or any other degrees. This project paper is the result of our independent work and investigation, except where otherwise stated. All verbatim extracts have been distinguished by quotation marks and sources of our information have been specifically acknowledged. Signature: _______________ Date: _________________ ii LETTER OF SUBMISSION ...
Words: 16196 - Pages: 65
...The current issue and full text archive of this journal is available at www.emeraldinsight.com/1743-9132.htm IJMF 6,1 24 A comparative analysis of the performance of conventional and Islamic unit trust companies in Malaysia Norma Md. Saad, M. Shabri Abd. Majid, Salina Kassim, Zarinah Hamid and Rosylin Mohd. Yusof Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia Abstract Purpose – The purpose of this paper is to investigate the efficiency of selected conventional and Islamic unit trust companies in Malaysia during the period 2002 to 2005. Design/methodology/approach – The paper adopts Data Envelopment Analysis (DEA) to investigate efficiency, as measured by the Malmquist index, which is decomposed into two components: efficiency change and technical change indexes. Findings – The study indicates that technical efficiency is the main contributor to enhancing the efficiency of the Malaysian unit trust industry. In addition, the larger the size of the unit trust companies, the more inefficient the performance. In comparing the efficiency of unit trust companies, the study finds that some of the Islamic unit trust companies perform better than their conventional counterparts. Research limitations/implications – The study is limited to five Islamic unit trust companies. Thus, the findings of this study are indicative, but inconclusive for the unit trust industry as a whole. Practical implications...
Words: 11712 - Pages: 47
...Introduction: Efficient Market Hypothesis (EMH) implies markets to be rational, incorporating new information to reflect in stock prices rapidly, considering direction and size of the share price movement. Consequently, leaving no opportunities for investors to beat the market and acquire abnormal returns. Predictable information raises the stock prices prior to its occurrence, and rapidly adjusting at the event date. Addendum to EMH, Random Walk Theory proposes market prices abide no pressure from past-price movements thus pursue a random course, making impossible to forecast future-price movements as they are an independent of past-prices. Fama (1970) establish three-level grading system portraying degree of market efficiency, based on investment approach endowing abnormal returns: Market anomalies are inconsistent with EMH and a consequence of deviations and incomprehensible patterns in smooth running of stock markets. Anomalies are statistically considerable and additionally proffer investors with risk adjusted economic returns. Once documented and scrutinized in literature, anomalies tend to disappear, overturn, or attenuate; doubting their subsistence in past, as being statistical irregularity, or have been arbitraged away. This essay will begin by defining limitations of CAPM and introduce three-factor model. Additionally, it will discuss the fundamental anomalies (Value and Size effects), calendar anomalies (January, Weekend and Time-of-the-month effects) and Technical...
Words: 5201 - Pages: 21
...University of Malaya, Kuala Lumpur, Malaysia Keywords Accounting profession, Malaysia, Standards Abstract This paper offers insights into the conflicts and tensions within the Malaysian accounting profession and the power struggle therein to dominate the accounting standard setting process, within the context of a rapidly developing country. It shows how interest groups and parochial interests, along with issues of self-protection, affected the process of standard setting, which was controlled by different interests over the period under study. At one time the profession dominated. But far from being a monolithic body, it was in turn split according to various interests: the Big Six behind the Malaysian Association of Certified Public Accountants (MACPA) and the smaller firms behind the Malaysian Institute of Accountants (MIA). At other times big business prevailed. These conflicts and power struggles are revealed through an analysis of the case of the Goodwill Accounting Standard. Selvaraj D. Susela 358 Introduction This paper offers an understanding of the struggle within the accounting profession for control of the standard setting process, in the context of a developing nation. The focus on standard setting is specially geared to reveal the impact of that process on the profession, market, state and community, and vice versa. Susela (1996) illustrates that because standards clearly impact on practitioners (the profession), it is hardly surprising that they develop...
Words: 14526 - Pages: 59
...University of Malaya, Kuala Lumpur, Malaysia Keywords Accounting profession, Malaysia, Standards Abstract This paper offers insights into the conflicts and tensions within the Malaysian accounting profession and the power struggle therein to dominate the accounting standard setting process, within the context of a rapidly developing country. It shows how interest groups and parochial interests, along with issues of self-protection, affected the process of standard setting, which was controlled by different interests over the period under study. At one time the profession dominated. But far from being a monolithic body, it was in turn split according to various interests: the Big Six behind the Malaysian Association of Certified Public Accountants (MACPA) and the smaller firms behind the Malaysian Institute of Accountants (MIA). At other times big business prevailed. These conflicts and power struggles are revealed through an analysis of the case of the Goodwill Accounting Standard. Selvaraj D. Susela 358 Introduction This paper offers an understanding of the struggle within the accounting profession for control of the standard setting process, in the context of a developing nation. The focus on standard setting is specially geared to reveal the impact of that process on the profession, market, state and community, and vice versa. Susela (1996) illustrates that because standards clearly impact on practitioners (the profession), it is hardly surprising that they develop...
Words: 14526 - Pages: 59
...DETERMINANTS OF CORPORATE PERFORMANCE OF MALAYSIAN COMPANIES Kamal Naser Cardiff Business School Cardiff University E-mail:Naser@cardiff.ac.uk Mohd Zulkifli Mokhtar Cardiff Business School Cardiff University E-mail:MokhtarMZ@cardiff.ac.uk Accepted for Presentation at the Fourth Asia Pacific Interdisciplinary Research in Accounting Conference 4 to 6 July 2004 Singapore 1 DETERMINANTS OF CORPORATE PERFORMANCE OF MALAYSIAN COMPANIES ABSTRACT This study sets out to identify factors that influence corporate financial performance in a sample of Malaysian companies during the period 1998 –2001. Different measures of corporate performance were employed in the current study. ISO registration appeared to be the most significant determinant of corporate performance in the sampled companies. In addition, the results reveal that ROA, EVA, ROS and Inventory are the most significant variables affecting ISO. The findings also revealed that ISO companies out perform non-ISO registered companies. Keywords: Corporate Performance; ISO 9000; Return on Assets; Economic Value Added; Return on Sales; Inventory. 2 DETERMINANTS OF CORPORATE PERFORMANCE OF MALAYSIAN COMPANIES INTRODUCTION The subject of corporate performance has received significant attention from scholars in the various areas of business and strategic management. It has also been the primary concern of business practitioners (managers and entrepreneurs) in all types of organizations since corporate performance...
Words: 9173 - Pages: 37
...AN ANALYSIS OF THE EFFECTS OF INTEREST RATE AND EXCHANGE RATE CHANGES ON STOCK MARKET RETURNS: EMPIRICAL EVIDENCE OF GHANA STOCK EXCHANGE A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION Institute of Distance Learning, KNUST JUNE, 2011 DECLARATION I hereby declare that this submission is my own work toward the Commonwealth Executive Master of Business Administration and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University except where due acknowledgement has been made in the text. RANSFORD CHARLES ENYAAH (STUDENT ID No: 20103521) …………………… Signature …………………. Date Certified by: EDWARD ACHEAMPONG (SUPERVISOR) …………………… Signature …………………. Date Certified by: ……………………………… Head of IDL …………………… Signature …………………. Date i DEDICATION I dedicate this project work to the Lord Almighty and all my loved ones. ii ACKNOWLEDGEMENT First of all, I thank the almighty God for fulfilling his promises to my life and for granting me the strength, wisdom and knowledge to complete this work My profound gratitude goes to my Supervisor, Mr. Edward Acheampong (Lecturer, Methodist University College, Ghana) for his unflinching dedication...
Words: 13267 - Pages: 54
...Earnings Management Nurwati A. Ahmad-Zaluki Banking and Finance Building, College of Business Universiti Utara Malaysia, 06010 Sintok Kedah, Malaysia Tel: 60-4-928-6451 Abstract E-mail: nurwati@uum.edu.my The present study investigates the operating performance and the existence of earnings management for a sample of 254 Malaysian IPO companies over the period 1990-2000. Using accrual-based measure of operating performance, this study finds strong evidence of declining performance in the IPO year and up to three years following IPOs relative to the pre-IPO period. This finding is consistent with the results of prior studies documenting the long run underperformance of IPO companies. The results also confirm that the decline in post-IPO operating performance is due to the existence of earnings manipulation by the IPO manager at the time of going public. Keywords: Initial public offerings, Operating performance, Earnings management 1. Introduction Existing international studies of initial public offering (IPO) companies find that operating performance had declined in the post-IPO period (Jain and Kini, 1994; Mikkelson et al, 1997; Kim et al., 2004). The majority of prior studies are based on the accrual measure of accounting profits which are potentially subject to accounting manipulation by managers, for example through working capital adjustments (Teoh et al., 1998). The most recent study of operating performance of Malaysian IPO companies was undertaken by Ahmad and...
Words: 7044 - Pages: 29
...Signature……………………………………………………… Date………………………. Name (PhD.) School of Business ACKNOWLEDGEMENT I take this opportunity to express my gratitude and regards to Professor name (PhD.) for his guidance. I am indebted to all the persons and institutions that offered support, encouragement and prayers to me during the entire research. Lastly, I thank almighty, my parents, brother, sisters and friends for their constant encouragement without which this assignment would not be possible. ABSTRACT The study seeks to investigate the factors affecting performance of commercial banks in Kenya. The Background of the study reveals that there has been continued globalization and economic cooperation among the world economies resulting to efficiency in the world banking markets. There has been stiff competition amongst banks in Kenya resulting to banks continuously coming up with new strategies and products to survive the stiff competition and improve performance. The big issues in the study will be banks have aggressively increased customer base disregarding Know Your Customer (KYC) guideline....
Words: 10187 - Pages: 41
...OFFERINGS: EVIDENCE FROM THE SINGAPORE IPO MARKET VOON PEIJUN (Bachelor of Business Administration (Hons), NUS) A THESIS SUBMITTED FOR THE DEGREE OF MASTERS OF SCIENCE (BUSINESS) DEPART DEPARTMENT OF FINANCE AND ACCOUNTING NATIONAL UNIVERSITY OF SINGAPORE 2009 ACKNOWLEDGEMENT I would like to express my warmest gratitude to Professor Michael Shih for his patient guidance and encouragement all this while. A very big thank you, Sir. I would also like to take this opportunity to thank my family for their love and concern all these years. Thank you Dad, Mum and Brother. Without their support, I would not have come so far. Thank you! Voon Peijun 2009 Page i ABSTRACT The study explores the role of issue managers in the initial public offering (IPO) process. Empirical research shows that IPOs are associated with two significant market anomalies: short-run underpricing puzzle and long-run underperformance phenomenon. This paper examines the reputational influence of issue managers on the two anomalies. Employing the newly developed ‘twelve-month rolling’ reputation ranking approach, our study is the first to furnish a comprehensive ranking of all the issue managers with a substantial presence in Singapore. Based on a sample of 384 IPOs listed on the Singapore Exchange between January 1, 1997 and August 22, 2008, we find evidence of prevalent short-run underpricing and long-run underperformance in the domestic market. Our findings indicate that the IPOs backed...
Words: 28110 - Pages: 113
