Comparative Evaluation of Profitability Determinants : Evidence of Non-Finance Versus Finance Firms

The purpose of this study is to investigate factors that affect the profitability determinants on firms listed on the Bursa Malaysia Main Board. This study covers a period from 1999 to 2004 with 60 firms selected across six sector of economy in Malaysia. The objectives of this study are firstly to find out the factors affecting profitability of the overall sectors selected in this study; secondly to differentiate the significant profitability determinants of finance sector and non-finance sector of the Malaysian economy. The third objective is to investigate the different sectors influence on the profitability of firms. All results are tested at 0.05 significant levels. To achieve the objectives, multivariate regression is used to test the hypothesis. From the analysis, the result suggest that firm capital investment intensity, the leverage ratio, profit margin, asset turnover and industry capital intensity on all firms sample have significant impact on the profitability determinants. In contrast, firm sales growth and market share are not significantly related to the contribution on profitability determinants. On the other hand, the profitability determinants of nonfinance sector are affected by firm sales growth, profit margin, leverage ratio, firm capital investment intensity, asset turnover and industry capital investment intensity. For finance sector, firm size, profit margin, leverage ratio and asset turnover are the factors that contributed to profitability determinants. This study also indicated that different sectors’ effect is not significant in the determinations of profitability between finance sector and non-finance sector

Cynicism in organizations: does organizational justice matter?

This research investigated the influence of organizational justice on organizational cynicism. By using a survey method through the questionnaires distribution, 504 data were collected and analysed. Based on the data analysis result, this research indicates a negative relationship between organizational justice and organizational cynicism.Additionally, procedural justice was found to be the strongest organizational justice dimension that significantly influencing organizational cynicism level. Moreover, the limitations and directions for the future research are also discussed

The Impact of Regulatory Capital on Risk Taking By Pakistani Banks: An Empirical Study

Objective - The objective of this study is to examine the relationship between capital regulation and risk-taking by the banks of Pakistan.  Design - This study was conducted on all the commercial banks of Pakistan and data were collected from the year 2005 to 2016.  Findings - This study concluded the significant positive relationship between regulatory capital and risk-taking by banks in Pakistan. The findings of this study play a key role in the implementation of capital regulations in the banks of developing countries.  Policy Implications - In the light of this study, the regulators must revise their implementation process of the Basel Accord capital regulations in the banks of developing countries. The prime intention of regulators are only on to maintain the minimum capital ratios but must be conscious of other important elements of capital regulation implications.  Originality - This study is one of the first attempts that investigated the crucial role of regulatory capital towards risk-taking in the Pakistani context

Solidarity factor in cultivating entrepreneurial culture among the Minangkabau’s sub-ethnic group, West Sumatera, Indonesia

Traditional ceremonies and customs that are tied up in a culture of solidarity are estimated to affect efficiency and entrepreneurial career in Minangkabau society of Indonesia. The objective of this study is firstly to review the role of the culture of solidarity in explaining the creation of successful entrepreneurial career. Secondly is to identify the role of the culture of solidarity in explaining entrepreneurial competencies. Thirdly is to measure the relationship between entrepreneurial competencies and career success in determining to what extent entrepreneurial competencies can explain the relationship between the culture of solidarity and entrepreneurial career success in the Minangkabau society of Indonesia. The theory of Cultural Capital and Entrepreneurial Behaviour Theory is applied to build the framework of the research work. Questionnaire prefixes descriptive exploration and followed by regression analysis to test four hypotheses. Data was collected from 359 small and medium enterprises (SMES) engaged in the business of clothes and food in Elegant District, West Sumatra, Indonesia. The results of this study explained that a culture of solidarity give significant effect to the success of the entrepreneurial career. Meanwhile, an entrepreneurial competency also affects the success of entrepreneurial career that explained the factors in the relationship between the culture of solidarity and entrepreneurial career success. This research contributed significantly to the knowledge of entrepreneurship, which suggests that the spirit of solidarity in the community culture plays an important role in shaping and promoting competency of the community towards entrepreneurship development in Minangkabau community

The Impact of Private Ownership Structure on Risk Taking by Pakistani Banks: An Empirical Study

The financial crisis of 2007-09 was converted the focus of researchers and regulators toward bank risk-taking and this study is also analyzed the private ownership structure impact on Pakistani bank’s risk-taking. This study selects the all Pakistani private banks for investigation and data is collected from financial statements from 2005 to 2016. Most of the past studies found a negative impact of private ownership structure on bank risk-taking and this study is also indicated the negative relationship between private ownership and bank risk-taking. On the other, non-performing loans are double than the international standards that highlighted the owner’s attention toward high risky investments for high return. Thus, this study suggests that check this relationship with other factors that forced the owner’s behavior toward risk.</jats:p

Impact of Regulatory Capital on Risk Taking By Pakistani Banks

Objective - The objective of this study is to examine the relationship between capital regulation and risk-taking by the banks of Pakistan. &#x0D; Design - This study was conducted on all the commercial banks of Pakistan and data were collected from the year 2005 to 2016. &#x0D; Findings - This study concluded the significant positive relationship between regulatory capital and risk-taking by banks in Pakistan. The findings of this study play a key role in the implementation of capital regulations in the banks of developing countries. &#x0D; Policy Implications - In the light of this study, the regulators must revise their implementation process of the Basel Accord capital regulations in the banks of developing countries. The prime intention of regulators are only on to maintain the minimum capital ratios but must be conscious of other important elements of capital regulation implications. &#x0D; Originality - This study is one of the first attempts that investigated the crucial role of regulatory capital towards risk-taking in the Pakistani context.</jats:p

Drivers of future savings of Malaysian households

The households’ savings in Malaysia have shown a deteriorating trend that negatively impacts their financial security. The Financial Inclusion and Capability Study of BNM (2016) indicates that merely 6 percent of Malaysians could survive for more than six months and 18 percent up to three months if they lose their main source of income. Thus, it is imperative to examine the drivers of future savings of Malaysian households. A sample of 1,106 bank customers in three cities of peninsular Malaysia was recruited, and the descriptive statistics, correlation analysis, and Seemingly Unrelated Regressions (SUR) were employed. The results reveal that about 25 percent of households are not likely to make any changes in their savings profile in various financial and physical assets. The drivers of future saving are found to be socio-demographic parameters, such as age, education level, the number of working members in the household, and income, and other parameters, such as the percentage of income saved, and the period of the saving plan, which have a significant relationship with the change in future savings of the households. The policy implications of the findings are also presented

DRIVERS OF FUTURE SAVINGS OF MALAYSIAN HOUSEHOLDS

The households’ savings in Malaysia have shown a deteriorating trend that negatively impacts their financial security. The Financial Inclusion and Capability Study of BNM (2016) indicates that merely 6 percent of Malaysians could survive for more than six months and 18 percent up to three months if they lose their main source of income. Thus, it is imperative to examine the drivers of future savings of Malaysian households. A sample of 1,106 bank customers in three cities of peninsular Malaysia was recruited, and the descriptive statistics, correlation analysis, and Seemingly Unrelated Regressions (SUR) were employed. The results reveal that about 25 percent of households are not likely to make any changes in their savings profile in various financial and physical assets. The drivers of future saving are found to be socio-demographic parameters, such as age, education level, the number of working members in the household, and income, and other parameters, such as the percentage of income saved, and the period of the saving plan, which have a significant relationship with the change in future savings of the households. The policy implications of the findings are also presented.</jats:p

Savings and Investment Behaviour of the Consumer of Financial Services and Their Service Expectations from Banks (S/O 12349)

Deciphering the relationship between domestic savings, investment and growth has occupied one of the major areas of focus in economic theory and has consequently attracted the attention of empirical research. According to World Bank data, the ratio of gross savings as a percentage of GDP of Malaysia fell from 35.3 percent in the year 2000 to 30.37 percent in 2013. The ratio was 52.08 in Singapore, 32.97 in Thailand and 33.90 in Indonesia in the year 2014. The profile of household savings reflect that the average savings of Malaysian household as percentage of adjusted disposable income, and average household savings as percentage of GDP during 2000 to 2013, were 1.37 and 3.78 percent respectively. The actual percentages fell from 1.82 percent and 5.27 percent in the year 2010 to 1.40 percent and 3.84 percent respectively by the end of 2013. If the mandatory pension contributions are taken out, the profile of household savings in the country would be further worse. Given the above perspective, present research was aimed at i) deciphering the drivers of savings of Malaysian households, ii) to assess the future savings behavior in physical and financial forms of assets and iii) to assess the service expectations of customers from banks in the country which will enable banks to workout appropriate strategies to garner business. This study is based on a primary survey of the savings and investment behavior of 1107 bank customers in three peninsular cities of Malaysia in 2013. Using Seemingly Unrelated Regressions (SUR) Framework, the key driver of savings is income, which, is found to have a positive and significant influence on savings. The influence of income is higher on the saving in financial assets than physical assets. Location however, is significantly and positively influencing the amount of saving in physical assets. Other self-perceived factors like market price and infrastructure have a significant and negative impact on the saving in physical assets. In terms of future saving behaviour, 25 percent of households are not likely to make any change in their savings profile in various financial and physical assets in which the percentage distribution of the change in savings of households in four types of asset (deposits, other financial assets, real estate and other physical assets) seems to be normally distributed. The results also indicate that the respondents tend to decrease their percentage of saving in financial assets of non-deposit, other physical assets. They are likely to increase their percentage of savings in deposits and real estate. It is also interesting to note that respondents, who are single, are more likely to increase their percentage of saving in real estate and decrease their percentage of savings in the form of deposit. Another significant findings based on logit model to estimate the predicted probability of the relative quality of customer service shows CIMB customers are less satisfied with the location, employee responsiveness, and administrative effectiveness. On the other hand, the AMMB customers are more satisfied with speed; HLB customers are more satisfied with customer orientation. BIMB is found to be most vulnerable in terms of its potential switch of its customers. The implication of the results is that banks in Malaysia need to pay more attention to working out appropriate customer retention strategies to strengthen their position in the marketplace, one of which is to keep a close tab on their branch network which is not only the major cost centre but is also the pivot of business growth by ensuring customer deligh