Uniqueness of finance industry in Malaysia is where the industry operated parallels between conventional practice and Islamic practice. This also involved the Insurance industry in Malaysia. In Malaysia, insurance companies operates in 2 types, either by conventional or Islamic insurance, which also known as Takaful. Those two types of companies is almost similar, but in terms of operational and investment level, the Islamic insurance must be in tune with the Shariah principles. The policyholders, investors and regulators are interested in the performance of this industry. By focusing for the Islamic insurance industry, this study aims to investigate the investment performance of Islamic insurance industry in Malaysia. Eight independent variables had been selected comprises of company-specific factor and macro factors in this study. The period of this study was between years 2011 until 2020, a ten years study. Panel regression was employed on five selected Islamic insurance (Takaful) operators in Malaysia. The result reveals size (CS), liquidity (LIQ) and equity return (EQUIR) are significant in relation with the investment performance of Islamic insurance company in Malaysia.
Commercial banks play a pivotal role as a financial intermediary in mobilizing funds among the sectors such as private households, business firms, and the government. Investment activities, business expansion, and industrial development depend largely on the funds, without which a country’s economy will be stagnant and even worse the economy is going to be in catastrophe. Apparently, lending activity is the core business of commercial banks that contributes the largest income proportion to the banks. Therefore, this paper aims to examine the four specific internal factors influencing the commercial banks’ lending behaviour. Sampling from the year 2009 to 2018, this study evidences that the volume of deposit, level of liquidity and bank size significantly influences the lending behaviour of commercial banks in Malaysia after the 2007/2008 global financial crisis. Specifically, the volume of deposit and non-performing loans negatively influence the banks’ lending behaviour whereas the level of liquidity and bank size pose positive impacts on lending behaviour. These findings are very beneficial to the commercial banks, the Central Bank of Malaysia (BNM), depositors or shareholders as well as business firms in planning, formulating appropriate policies and ultimately making well-informed decisions in the future.
The study of what influences the dividend payout policy remains highly relevant as it is an important factor that is being considered by both companies and investors. This study attempts to investigate the significant factors that affect the dividend payout of healthcare companies in Malaysia. To meet the objective of this study, 10 years financial data from a sample of healthcare companies listed on the main board of Bursa Malaysia is analysed to investigate the effect of the determinants towards the dividend payout ratio. Correlation analysis and multiple linear regression analysis are applied to determine the relationship between variables and the effect of the independent variables towards the dividend payout. The findings indicate that liquidity, investment opportunity, leverage and company size are significant in determining the dividend payout ratio of Malaysia healthcare companies.
Gold is one of the world-leading commodities, which is sought after as jewellery as well as an investment. Despite gold advantage as a reliable store of value, its price has been as fluctuating as other commodities or assets such as crude oil and stock. Therefore, investors should be aware that gold is not totally resistant to market turmoil and economic crisis. Gold could be as vulnerable as other traditional investment vehicles. Hence, this paper focuses on investigating the macroeconomic variables affecting gold prices in Malaysia using monthly data from 2014 to 2018. This study uses Pearson Correlation and Multiple Linear Regression tests to determine significant relationships and effects between the independent variables, namely interest rates, inflation rates, crude oil price, and exchange rates with the dependent variable, namely gold price. The findings show that the interest rate has a significant negative effect on gold price while inflation rate, crude oil price, and exchange rate have a significant positive effect on gold price in Malaysia, respectively. The results suggest valuable information and insight to policymakers, researchers, and investors in decision making.
Profitability is an important characteristic of a company and is often viewed as an essential requirement for a company's long term survival. High profitability indicates that the company is successful and it conveys as a positive signal to investors, hence increasing the company's value. Therefore, the main objective for this study is to determine the effect of several selected firm-level factors on profitability performance of technology companies listed on ACE Market of Bursa Malaysia. Data were collected from 20 companies for the period 2016-2020. Return on asset (ROA) was used as the proxy for profitability. The findings revealed that liquidity ratio (LR) has a significant positive relationship with ROA and average collection period (ACP) was negatively and significantly related to ROA. The findings provide valuable insights for the equity market investors to acknowledge the factors which relate to the profitability of technology companies listed on the ACE market.
Previous studies pertaining to the co-movement and causal relationship between Malaysian stock markets and domestic macroeconomic variables are by now quite well documented. Nonetheless, to the best of authors’ knowledge, there is a void in the literature about foreign macroeconomic variables. Therefore, this paper aims to examine co-movement and causal relationship between FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) with foreign macroeconomic variables namely world crude oil price, gold price, and five world major stock market indices; Singapore’s Straits Times Index (STI), Chinese Shanghai A-Share Index (SHAI), the US’s Dow Jones Industrial Average (DJIA), Hong Kong’s Hang Seng Index (HSI) and Japanese Nikkei 225 Index (NIK). We also include domestic macroeconomic variables namely private sector domestic credit, gross international reserves and foreign currency assets, and an exchange rate of Malaysian ringgit (MYR) to the US dollar (USD) in this study. Using 9-year monthly data series from 2010 to 2018, the Augmented Dickey-Fuller (ADF) test reveals that data series have unit root in level order, but become integrated when converted into the first difference. The t-statistics of the Trace test suggests that FBMKLCI co-moves with Malaysian gross international reserves and foreign currency assets, world gold price and STI in the long run, respectively. Further, the VECM notes the absence of long-run or short runs causal relationships except Singapore’s STI to FBMKLCI in the short run. The pairwise Granger causality test indicates a one-way causal relationship running from FBMKLCI to gross international reserves and foreign currency assets. The findings benefit stock market investors, diversified portfolio fund managers, market regulators, and policymakers besides enriching the existing literature.
The growth of online shopping is impressive. The presence of social media platforms accelerates the way companies connect directly with consumers. In other words, consumers use internet as shopping channel instead of physically walk into the traditional brick-and-mortar retail stores. Nowadays, majority of the young people are associated with technologies and digital media. Online shopping has become a significant part of their lifestyle. The objective of this study concerns to understand the demography and perceptions towards online shopping orientation of young Malaysian in Kelantan. Therefore, a sample of 101 young shoppers in Kota Bharu, Kelantan were asked for input and descriptive analysis was done to examine factors shaping their online shopping preference. Based on the result, the study highlighted three significant findings. Perceived ease of use, perceived usefulness and past online shopping experience are the key factors which influence online shopping orientation for young shoppers. Consequently, the finding is important for business developers to form their e-marketing strategies in creating a highly convenient e-store platform to fit the changing needs of young shoppers' lifestyles towards online shopping experience especially in Kelantan.
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