This study aims to identify the effect of Enterprise Risk Management (ERM) implementation on SMEs performance in Malaysia. SME performance is used as a dependent variable, whereas eight (8) elements of ERM are based on the Committee of Sponsoring Organisations of the Treadway Commission (COSO) framework as the independent variables. Primary data were administered through questionnaires among 312 respondents from the main contributing sectors of SMEs; agriculture, construction, mining and quarrying, services and manufacturing across all states in Malaysia. This study employed six (6) analyses, including descriptive statistics, normality, reliability, correlation, multiple regression analysis and hypothesis testing. Results from correlation analysis indicated that the independent variables represented eight (8) elements of ERM, illustrating a positive, strong correlation with the dependent variable. Multiple regression analysis showed that ERM has a positive effect on SME performance. However, only three (3) of the ERM elements, namely event identification, risk assessment, and risk response, significantly affect SME performance. The information was gathered from a questionnaire of 312 respondents and there are only 177 respondents think that their company implemented ERM, whereas the remaining 135 do not think their company implements ERM. An ERM implementation in SMEs is expected to be able to find solutions to minimise the risks that SMEs may or may not face. Effective risk management can enable SME owners, managers and employees to achieve business objectives. As a result, risk management enhances the value of the business, increases profitability, and improves the overall performance of SMEs.
Purpose The global financial crisis of 2008 still has an impact on the financial systems around the world, for which funding liquidity has been mentioned as one of the main concerns during that period. This study aims to consider the impact of and extent to which the funding structure of Islamic banks along with deposit structure, macroeconomic variables, other bank-specific variables, including alternative funding mix variables (in terms of funding structure measured as financing/deposit ratio), could play a part in explaining the financial conditions and predicting the failures and performances of Islamic banks in the case of Malaysia under the distress created by the global financial crisis. Design/methodology/approach Multivariate logit model was used with a sample including 17 full-fledged Islamic banks in Malaysia for the period from December 2005 to September 2010 by using quarterly data. Findings This study found that the funding mix variable (financing/deposit ratio), the composition of deposits, alternative bank-specific variables and alternative funding mix variables are statistically significant. In contrast, none of the macroeconomic variables is found to have a significant impact on bank liquidity. In the final models, the variables that showed significant performance were selected as explanatory variables. The results of McFadden R-squared for both selected models showed an excellent fit to predict the Islamic banks’ performance. Originality/value This empirical study contributes to the literature in two ways: to the best of the authors’ knowledge, this is the first study to examine the role of the funding structures of Islamic banks in determining their performance; and it also examines the effect of deposit composition (the mudharabah and non-mudharabah deposits) on Islamic banks’ performance.
Digital inclusive finance (DIF) plays an active role in preventing poverty-stricken groups from returning to poverty and reducing poverty. This paper empirically tests the impact of DIF on rural poverty alleviation using panel data from 30 Chinese provinces from 2011 to 2020 as a sample. It employs multiple linear regression, mediation effect models, and threshold effect models. The results show that: (1) DIF and its three sub-indicators (coverage breadth, depth of use, and digitalization degree) have significant poverty reduction effects, and the findings hold even when endogeneity is taken into account; (2) a study of regional heterogeneity found that DIF and its sub-indices, coverage and depth of use in the eastern region, have the greatest effect on the poverty alleviation of rural residents, and the effects in the central and western regions have the least effect; (3) the mediation effect test found that DIF could indirectly promote poverty alleviation in rural areas by promoting regional economic growth and narrowing the urban-rural income gap. The Sobel test shows that the mediating effect of regional economic growth is greater than the mediating effect of the urban-rural income gap; (4) it is found through the threshold effect test that regional economic growth has a double threshold effect on rural poverty alleviation, and as the threshold value continues to increase, the poverty reduction effect increases in turn. Therefore, this paper puts forward policy suggestions for the aspects of accelerating the development of DIF in rural areas, implementing regionally differentiated poverty reduction strategies according to local conditions, promoting regional economic growth, and narrowing the urban-rural income gap.
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