58 research outputs found
Corporate governance structure and firm performance : empirical evidence from Brusa Malaysia, Kuala Lumper
The issue of corporate governance has been emerging as important phenomena that has been searched extensively both in developed countries due to its strategic impact on the monitoring of management activities and firms’ performance. Yet little attempt has been made in developing countries like Malaysia to ascertain what constitute corporate governance and its impact on firm\u27s performance. Therefore, this study aims at examining the structure of the corporate governance and its impact on firm’s performance. This study is based on 100 firms, which are the component of the Composite Index (CI) serve as market barometer. This study employs cross-sectional annual multiple regression model to examine, what constitutes the corporate governance structure and its impact on performance of the firm. The analysis was based on annual regression over 5 years period from 1997 through 2001. Three different blend of surrogate for corporate governance were developed for good corporate governance structure. These are the independent non-executive (outside) directors, audit committee and remuneration committee. To isolate the size effect from the impact of corporate governance structure on firm’s performance, firm’s size was also included are variable in the model. The ratio of net income before tax to total asset is used as a surrogate for firm’s performance. Evidence from the study indicates that there is partial relation between corporate governance structure and corporate performance. The presence of both audit and remuneration committee serves as an important monitoring device to control management activities that lead to increase firm\u27s performance. While on average, the presence of independent nonexecutive directors does not provide any significant explanation for the firm\u27s performance. However, the firm size appears to have significant impact on corporate performance.<br /
An SVAR Analysis of Monetary Policy Dynamics and Housing Market Responses in Australia
This paper examines the impact of monetary policy and a range of sector-specific and macroeconomic shocks on the Australian housing market using quarterly data for a period of 1974-2008. The paper develops a structural vector autoregressive (SVAR) model based on contemporaneous restrictions to analyse the dynamics of these shocks. The results indicate that supply of new houses in Australia rises with higher real house prices; and that house prices rise and fall with higher inflation rate and interest rate, respectively. Dynamics of the impulse responses reveal significant effect of monetary policy on new house constructions, real house prices, material costs and inflation. Results also suggest that housing output, real house prices and interest rates respond significantly to shocks to housing supply, housing demand and to a number of other variables. These results are expected to shed some lights on the current policy environment pertaining to the Australian housing sector.Monetary transmission, Housing market, Structural VAR
Auditor change during listings: effect on IPO premiums
The study examined the relationship between choice of quality differentiated audit firm and initial return at listing. It is conjectured that the superior audit quality of Tier 1 audit firms helps to reduce ex-ante uncertainty and consequently reduces the initial premiums at listing. The findings show that there is an inclination for listed firms to engage Tier 1 audit firms, and no significant difference in the initial returns of IPOs firms audited by either Tier 1 or Non-Tier 1 audit firms were observed. However, higher significant initial returns for new issues were observed for Second Board firms relative to Main Board firms. The findings do not appear to suggest that the auditor reputation is a determinant of initial returns at listing. The findings are consistent with those documented by Shamsher and Annuar (1997) that investors are indifferent to the quality of audit service provided by Tier 1 and Non-Tier 1 audit firms
Oil price volatility and sectoral returns uncertainties: evidence from a threshold based approach for the Australian equity market
This paper examines the existence of a non-linear relationship between oil price volatility andequity market uncertainty. The study specifically analyses the pattern of effects of oil pricevolatility on the broader equity market as well as the sectoral equity returns volatility withinAustralian Economy. We use a logistic transition based autoregressive model (LSTR) developedby Teräsvirta and Anderson (1992) and Teräsvirta, (1994). We find that the hypothesis oflinearity between oil price volatility and equity market uncertainty is rejected for six out of 10sectors of the Australian economy. The retention of LSTR model suggests that the oil returnvolatility has high and low regimes that affect equity markets differently across the sectors. Thetransition functions suggest that switching of oil price volatility from low to high regime isabrupt for consumer discretion, financial and material sectors while such transition is smoothfor consumer staple, energy, and industrial sectors. The results also show that some sectors arequicker in responding to heightened volatility. From the VAR framework, the impulse responsefunctions show that a one period increase or a shock in oil price volatility raises volatility ofequity in consumer discretion, consumer staple, finance, industry, telecom and consumer staplesectors. Of these, equity volatility in industries and financial sectors seem to exhibit a prolongedpositive response following the oil price volatility shock. Also, equity volatility of industriesseems to rise by much larger proportion compared to the equity volatility response of othersectors. These findings are helpful as a guide for sectoral rotation strategies. In view of theincreased volatility of oil prices due to a negative impact of oil price shock and the resultantsurge of uncertainty, Australian firms could formulate their short and long run investment plansbased on volatility threshold level. Firms in consumer discretion, financial and industrial sectorcould consider postponement of investment if the volatility in oil price exceeds certain threshold.Also, firms in the consumer staple, energy and materials industry need to make prudent businessdecisions in situations where oil price volatility falls within the threshold range as identified bythe LSTR2 models. Based on the findings, there is a need for public policy formulation to reducethe adverse impacts of increased oil price uncertainties on the Australian economy duringperiods of unforeseen random events including depressions and crises
Oil price volatility, investment and sectoral responses: the Thai experience
This paper investigates the nexus between investment and oil price volatility in the context of a developing industrialised economy, Thailand. In the post Asian Crisis era, Thailand has been on a steady phase of recovery with industrial expansion as well as revival of investment and output growth. A significant portion of such growth is attributable to investment growth in metal products, machineries and other transportable goods which are the energy dependent industries. Implicit in these phenomena is the need to further scrutinise the impact of the exogenous shock emanating from uncertainty in oil market on the scale of investment in various sectors of the Thai economy. Using a threshold-based components generalized autoregressive conditional heteroskedasticity (CGARCH) model, the oil price volatility is decomposed into permanent and transitory volatilities. The oil price volatility components are then analysed in a structural vector autoregression (SVAR) framework, along with investment and other key macroeconomic variables. Dynamic impulse response functions obtained from the SVAR model reveal significant dampening effects of the conditional and transitory oil price volatility shocks on Thailand’s aggregate and sectoral level investments. The impulse responses clearly indicate that as the temporary volatility in oil price rises, total investment decreases significantly. At sectoral level, the responses of investments in food and textiles products suggest a significant dampening effect on investments due to shocks in both the conditional and transitory volatilities of oil prices. In contrast, a shock in the permanent volatility leads to only a small decline in investment in this sector, and for only about a quarter. Similar effects were also observed for other transportable goods, consisting primarily of wood products, furniture, and cork, straw and plaiting materials. The investment in the business services sector, which comprises investment in real estate services, does not exhibit any significant effects of shocks in the conditional, permanent and transitory volatilities of oil prices. The findings of this study have important implications for policy. Firstly, since the Thai economy is relatively energy intensive, any dynamic shock emanating from energy market will be detrimental to investment and economic growth. Secondly, the significant and stronger adverse effects of the temporary oil volatility point to the absence of insurance markets for guarding against any volatility risks, or the lack of managerial expertise for identifying and accommodating the negative impacts of a heightened transitory or permanent oil price volatility. Thirdly, firms operating in energy-dependent industries ought to remain vigilant especially in regards to weather adverse impacts of any transitory volatility of oil prices
The Relationship between Trading Volume, Volatility and Stock Market Returns: A test of Mixed Distribution Hypothesis for A Pre- and Post Crisis on Kuala Lumpur Stock Exchange
Auditor switch decision of Malaysian listed firms: tests of determinants and wealth effect
This article examines the economic rationale for auditor change by Malaysian listed firms by examining audit switch effect on share prices. The auditor change decision by management to retain or to change involves a switch across audit firms with different quality. Audit quality is
defined by classifying the audit firms into Tier 1 (Big-5) firms and Tier 2 (non-Big 5) firms. The distinguishing attribute between the two groups of audit products is believed to be the credibility that each group brings to the audit engagement. Factors associated with the choice of audit firm and changes for firm characteristics associated with auditor choice were investigated using the logistic regression model. The findings show that the auditor switch of Malaysian listed firms is partly explained by changes in management and turnover growth. Changes in firms' characteristics such as asset growth, purchase of fixed asset to total asset, leverage and changes in financing
activities explain auditor switches. There appears to be no evidence of significant wealth effect from auditor switch announcements
General anaesthetic and airway management practice for obstetric surgery in England: a prospective, multi-centre observational study
There are no current descriptions of general anaesthesia characteristics for obstetric surgery, despite recent changes to patient baseline characteristics and airway management guidelines. This analysis of data from the direct reporting of awareness in maternity patients' (DREAMY) study of accidental awareness during obstetric anaesthesia aimed to describe practice for obstetric general anaesthesia in England and compare with earlier surveys and best-practice recommendations. Consenting patients who received general anaesthesia for obstetric surgery in 72 hospitals from May 2017 to August 2018 were included. Baseline characteristics, airway management, anaesthetic techniques and major complications were collected. Descriptive analysis, binary logistic regression modelling and comparisons with earlier data were conducted. Data were collected from 3117 procedures, including 2554 (81.9%) caesarean deliveries. Thiopental was the induction drug in 1649 (52.9%) patients, compared with propofol in 1419 (45.5%). Suxamethonium was the neuromuscular blocking drug for tracheal intubation in 2631 (86.1%), compared with rocuronium in 367 (11.8%). Difficult tracheal intubation was reported in 1 in 19 (95%CI 1 in 16-22) and failed intubation in 1 in 312 (95%CI 1 in 169-667). Obese patients were over-represented compared with national baselines and associated with difficult, but not failed intubation. There was more evidence of change in practice for induction drugs (increased use of propofol) than neuromuscular blocking drugs (suxamethonium remains the most popular). There was evidence of improvement in practice, with increased monitoring and reversal of neuromuscular blockade (although this remains suboptimal). Despite a high risk of difficult intubation in this population, videolaryngoscopy was rarely used (1.9%)
Safety and efficacy of the ChAdOx1 nCoV-19 vaccine (AZD1222) against SARS-CoV-2: an interim analysis of four randomised controlled trials in Brazil, South Africa, and the UK.
BACKGROUND: A safe and efficacious vaccine against severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), if deployed with high coverage, could contribute to the control of the COVID-19 pandemic. We evaluated the safety and efficacy of the ChAdOx1 nCoV-19 vaccine in a pooled interim analysis of four trials. METHODS: This analysis includes data from four ongoing blinded, randomised, controlled trials done across the UK, Brazil, and South Africa. Participants aged 18 years and older were randomly assigned (1:1) to ChAdOx1 nCoV-19 vaccine or control (meningococcal group A, C, W, and Y conjugate vaccine or saline). Participants in the ChAdOx1 nCoV-19 group received two doses containing 5âĂâ1010 viral particles (standard dose; SD/SD cohort); a subset in the UK trial received a half dose as their first dose (low dose) and a standard dose as their second dose (LD/SD cohort). The primary efficacy analysis included symptomatic COVID-19 in seronegative participants with a nucleic acid amplification test-positive swab more than 14 days after a second dose of vaccine. Participants were analysed according to treatment received, with data cutoff on Nov 4, 2020. Vaccine efficacy was calculated as 1â-ârelative risk derived from a robust Poisson regression model adjusted for age. Studies are registered at ISRCTN89951424 and ClinicalTrials.gov, NCT04324606, NCT04400838, and NCT04444674. FINDINGS: Between April 23 and Nov 4, 2020, 23â848 participants were enrolled and 11â636 participants (7548 in the UK, 4088 in Brazil) were included in the interim primary efficacy analysis. In participants who received two standard doses, vaccine efficacy was 62·1% (95% CI 41·0-75·7; 27 [0·6%] of 4440 in the ChAdOx1 nCoV-19 group vs71 [1·6%] of 4455 in the control group) and in participants who received a low dose followed by a standard dose, efficacy was 90·0% (67·4-97·0; three [0·2%] of 1367 vs 30 [2·2%] of 1374; pinteraction=0·010). Overall vaccine efficacy across both groups was 70·4% (95·8% CI 54·8-80·6; 30 [0·5%] of 5807 vs 101 [1·7%] of 5829). From 21 days after the first dose, there were ten cases hospitalised for COVID-19, all in the control arm; two were classified as severe COVID-19, including one death. There were 74â341 person-months of safety follow-up (median 3·4 months, IQR 1·3-4·8): 175 severe adverse events occurred in 168 participants, 84 events in the ChAdOx1 nCoV-19 group and 91 in the control group. Three events were classified as possibly related to a vaccine: one in the ChAdOx1 nCoV-19 group, one in the control group, and one in a participant who remains masked to group allocation. INTERPRETATION: ChAdOx1 nCoV-19 has an acceptable safety profile and has been found to be efficacious against symptomatic COVID-19 in this interim analysis of ongoing clinical trials. FUNDING: UK Research and Innovation, National Institutes for Health Research (NIHR), Coalition for Epidemic Preparedness Innovations, Bill & Melinda Gates Foundation, Lemann Foundation, Rede D'Or, Brava and Telles Foundation, NIHR Oxford Biomedical Research Centre, Thames Valley and South Midland's NIHR Clinical Research Network, and AstraZeneca
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