The change in traditional banking with the effects of ICT

The application of Internet technology to the banking industry has transformed the traditional practice into a new era of convenient banking at your home or office with a touch of a button! This concept is new and practical to people who have the knowledge and means to accept this convenient and safe mode of operation.The objective is to survey all the local banks in Malaysia and observe what products and services they wish to offer to the community.A simple online survey of their available websites allowed one to view all the available transactions and activities connected to electronic banking or internet banking.The 10 local banks reviewed indicated that the most popular services and products available online are Current Account, Fixed Deposit, Saving Account, Home Loans and Credit Cards.Perhaps, the survey has proved that these facilities are the bread and butter for all local banks.Interestingly, all local banks have more than 80 types of transaction items stated on their websites.Not all of them can be practically done through the wireless technology; only a handful of them are acceptable to those who prefer the push of a button on the keyboard of the personal computer (PC). Nonetheless, the Internet or Web technology will pave the new wave of banking to the consumer who is knowledgeable in the area of the Information and Communicative Technology (ICT) in the local environment

What motivates and deters the ‘crowd’ in crowdfunding in Malaysia?

Objective: This study intends to theorize about how values and the perception of risk of the supporters of a crowdfunding project affect the success of the project. Methodology: A review of prior literature is carried out to identify the different dimensions of the decision making process. Implication: This research presents a conceptual framework to describe the influence of perceived values and risk on the success of crowdfunding in Malaysia. The crowdfunding phenomenon is relatively new in Malaysia and there is a lack of knowledge about the decision making of the ‘crowd’.  The success and sustainability of the crowdfunding phenomenon depends on the supporters of the funds

Social Justice Club - Miracle Makers

As members of the Social Justice Service Club our mission is to support the Social Justice LLC and to advance the mission the cause literacy throughout the Greater Miami Valley Region. To that end, we are also charged with fulfilling a voluntary service learning committment for our organization. This year in order to fulfill our obligation, we worked with the Miracle Makers After School Program at at the Ruskin Elementary School. As a service club co-hort, we were able to complete 150 hours of community service in the fall semester by mentoring the students, helping them with their homework, and engaging them in group and one-on-one recreational games. Our presentation will focus on our work and how it reinforces our committment to the Marianist ideals of lead, learn, and serve.https://ecommons.udayton.edu/stander_posters/1260/thumbnail.jp

Working capital and firm value in an emerging market

Purpose–The purpose of this paper is to examine the relationship between working capital efficiency and firm value and the influence of financing constraints on this relationship. Design/methodology/approach–Data from 192 firms spanning a period of ten years (1999-2008) are used for this purpose and analyzed using the ordinary least squares regression technique. Findings–The study finds that improvements in working capital efficiency through reduction in working capital investment results in higher firm value. However, this relationship is influenced by the financing constraints faced by a firm. For financially constrained firms, working capital efficiency significantly increases firm value but it is found to be insignificant for unconstrained firms

Industry characteristics and earnings management: a study of Malaysian industries

Purpose The purpose of this paper is to detect variations in earnings management activity across industries and the possible influence of various industry variables on these variations. Design/methodology/approach A total sample of 4,249 firm-year observations from 13 different industries spanning a total of eight years (from 2005 to 2012) is used for this purpose. The ordinary least squares regression technique is used to test the influence of various industry variables on earnings management activity. Findings The findings indicate the presence of earnings management practices in Malaysian industries. Among industry-level variables, capital intensity, volatility and profitability are found to influence aggregate earnings management. Further analysis shows that volatility only influences the smoothing measure while profitability influences the discretionary measure. Interestingly, industry competitiveness and leverage are not able to explain the variations in earnings management across industries. Originality/value To the authors’ knowledge, this is the first study which documents the role of various industry characteristics in influencing earnings management activity. It highlights the importance of considering industry-level variables in a study on earnings management and, hence, adds to the growing literature on earnings management

Religious anomalies in Islamic stock markets: The Hajj Effect in Saudi Arabia

This study focuses on the issue of religious anomalies, particularly the Hajj effect, influencing returns and volatility of the Saudi stock market (also known as the Tadawul All-Share Index). Using daily prices and trading volume of the index for a period of 9 years and the ARMA(1,1)–GARCH(1,1) model, it is found that returns are lower and volatility is higher during the Hajj period, although the effect is significant only for the volatility and not the returns

Determinants of liquidity in Malaysian SMEs: a quantile regression approach

Purpose The management of liquidity has always been seen as a critical but often ignored issue in finance. Despite the abundance of studies on liquidity management, these studies mainly focus on developed countries and on large firms. Liquidity is critical for the small firm but studies on liquidity management in small and medium enterprises (SMEs) are lacking. The purpose of this paper is to examine the firm-level determinants of liquidity of SMEs in Malaysia. Design/methodology/approach Data are collected for a total of 986 small firms in Malaysia from 2011 to 2014, resulting in a total of 2,683 observations. Firm-specific variables and the effect of the economy are considered as the possible determinants of liquidity. Ordinary least squares (OLS) regression analysis with standard errors adjusted for firm-level clustering and quantile regression analysis are used for this purpose. Findings Analysis using OLS regression technique indicates that a firm’s profitability, its growth, asset tangibility, size, age and firm status are significant factors in influencing its liquidity decision. Leverage and economic condition are not found to have any significant influence on liquidity. However, quantile regression analysis provides a different picture especially for SMEs with liquidity at the quantile levels of θ=0.10 and 0.90. At θ=0.10, only profitability, tangibility and firm status are significant, while at θ=0.90, tangibility, size, firm status and, to some extent, age are significant in influencing liquidity levels. Originality/value To the author’s knowledge, this is the first study analyzing the liquidity decision of SMEs in an emerging market such as Malaysia. Most studies on liquidity management of SMEs are focused on developed countries due to data availability but these studies are also only a handful. Additionally, this study uses quantile regression analysis which highlights the need to analyze financial decisions at different levels rather than at the aggregate level as done in OLS regression analysis

Seasonality in the Saudi stock market: The Hajj effect

This study focuses on the influence of the Hajj pilgrimage on the Saudi stock market. Stock returns data of the Tadawul All-Shares Index (TASI) and several sector indices from January 2010 to August 2014 are used to examine the impact of the Hajj pilgrimage on the return and volatility of the stock indices. Using the ARMA(p,q)-GARCH(1,1) model, the results show that while the Hajj period has an insignificant negative influence on the mean return ofthe TASI and the sector indices, a significant increase in volatility is observed for the TASI and all the sector indices, except for the retail, agriculture and food and the petrochemical sectors. The increase in volatility is contrary to what has been found in prior studies but is consistent with the expectation that reduced participation due to religious beliefs and sentiments increases volatility of returns. This study contributes to the scantliterature oncultural/religious anomalies in Islamic stock markets. The result being contrary to prior studies indicate that a deeper understanding of this stock market anomaly and the sentiments behind it is required

Determinants of Working Capital Investment: A Study of Malaysian PublicListed Firms

The paper examines the determinants of the level of investment in net operating working capital by firms in Malaysia. Data from 192 companies spanning a period of 8 years (2000- 2007) are analysed using the OLS regression technique for this purpose. The study finds that in times of economic expansion, younger and smaller firms with less tangible assets, low leverage, high immediate sales growth, high operating cash flows, less volatile revenues and low levels of asymmetric information are likely to have the highest investments in operating working capital. Board characteristics, namely size and the independence of the board, are not found to have any significant influence on the working capital investment of firms

Determinants of the Price and Non-price Terms of Bank Loans: A Study of Malaysian SMEs

The aim of this study is to investigate the determinants of the price and non-price terms of banks loans to SMEs. Responses from a survey questionnaire answered by 74 SMEs that had applied for and were granted bank loans is analyzed using SEM-PLS. The results indicate that the condition and capacity of the SME is significant in influencing interest rates while the SME’s ability to provide collateral, its capital and the character significantly influence the non-price terms. Soft information is highly significant in influencing both the price and non-price terms