Exchange rate volatility and financial performance of agriculture firms in Malaysia: an empirical analysis using GARCH, wavelet and system GMM

The insurgence of exchange rate volatility over the years has gained the attention of not only scholars but also policy makers around the world. This paper investigates the influence of exchange rate volatility to the financial performance of agriculture firms in Malaysia. Authors use the system GMM dynamic panel techniques, wavelet coherence technique and GARCH (1, 1) for the period of 2001 and 2015. The findings show that the volatility of exchange rate of Malaysian Ringgit (RM) has a negative impact on the financial performance of agriculture firms in Malaysia. The ARME and AVA demonstrate a positive impact on the financial performance at 1% significance level for the full sample. The findings also reveal that financial performance, exchange rate, consumer price index, and interest rate comove while using the wavelet coherence

A cross-country analysis on the effect of religiosity on takaful demand

Islamic Insurance or takaful has emerged as a distinguishable segment of Islamic Financial Products (IFPs). Shariah compliance business operation of takaful companies provide Islamic alternative to those who seek financial protection in any adverse situation at the same time guide their financial activities by Islamic regulation. However, considering the lack of literature explaining the impact of religion on human behavior and its consequence in creating takaful demand, this study examine the potential relationship. To understand the precise effect of religion, a multidimensional variable religiosity is considered. This variable is defined as the combined measure of the effect of religion on human behavior which comprises of religious belief, affection and actions. Furthermore, the effect of each dimension on demand is analyzed separately to gain in depth understanding of the relationship dynamics. Empirically, the study uses data of 15 years from 17 mostly Muslim majority countries. In a cross-country setting and employing the static panel data model, the study finds significant impact of religion in creating takaful demand. The analysis reveals that the stronger the degree of religiosity, the higher will be the demand for takaful. Additionally, the behavioral dimension of religiosity come out as the most significant one among the three dimensions while tested in separate models. Besides, a comparative analysis between Middle East and North Africa (MENA) and non- MENA countries revealed significant differences in demand in the regions exists; though religiosity does not come out as an influential variable in creating such variance. The current research expands the religiosity study allowing for Islamic religiosity which is narrow in the existing research stream. Moreover, a cross-country analysis make the findings more robust and bring novelty in takaful research. Subsequently, the study findings contribute to stakeholders’ decision making for better business growth taking into consideration the emotive aspect of the customers. Further, this helps the policy makers to stimulate the development of the takaful sector with prudent business guidelines

Exchange rate volatility and financial performance of agriculture firms in Malaysia: An empirical analysis using GARCH, wavelet and system GMM

The insurgence of exchange rate volatility over the years has gained the attention of not only scholars but also policy makers around the world. This paper investigates the influence of exchange rate volatility to the financial performance of agriculture firms in Malaysia. Authors use the system GMM dynamic panel techniques, wavelet coherence technique and GARCH (1, 1) for the period of 2001 and 2015. The findings show that the volatility of exchange rate of Malaysian Ringgit (RM) has a negative impact on the financial performance of agriculture firms in Malaysia. The ARME and AVA demonstrate a positive impact on the financial performance at 1% significance level for the full sample. The findings also reveal that financial performance, exchange rate, consumer price index, and interest rate comove while using the wavelet coherence

Is Bangladesh on the right path toward sustainable development? An empirical exploration of energy sources, economic growth, and CO2 discharges nexus

The sustainability of the recent economic progress of Bangladesh is critically dependent on how it faces envi-ronmental challenges, as the country is one of the primary victims of climate alteration. Taking into account the crucial roles of energy sources in this scenario, we analyze the impacts of non-renewable and renewable energy consumption (NREC and REC) on the growth-environment nexus in Bangladesh from 1980 to 2018. Based on the Auto-Regressive Distributed Lag (ARDL) model with and without structural breaks and policy dummies, our findings show that REC significantly upsurges economic growth, whereas NREC diminishes it. However, NREC leads to environmental deterioration, while REC enhances environmental quality. Besides, our results fail to support the Environmental Kuznets Curve hypothesis for Bangladesh. Interestingly, the policy dummy upsurges CO2 discharges while lessening economic growth, implying that the Bangladesh governments policies do not adequately cut pollution. Our Toda-Yamamoto non-causality test indicates a unidirectional causality running from GDP and its square term and NREC to CO2 emissions. Our findings suggest that policymakers in Bangladesh should adopt and implement strategies like enhancing renewable energy production, investment subsidies, tax credits, quota policies, and technological advancements to boost REC while plunging NREC to achieve economic sustainability.Author´s last draft is self-archived on the author's personal homepage: https://ylifin.wordpress.com/publications/</p

Abstracts of the International Conference on Business, Accounting and Finance 2023: Embracing New Business Paradigm Shifts

This book presents the abstracts of the selected contributions to the second International Academic Conference 2023, held on 25-26 February 2023 by the International University of Malaya-Wales (IUMW), Kuala Lumpur, Malaysia. IAC 2023 is the coming together of researchers and industry. It’s a place to gather and share groundbreaking ideas, discoveries, and experiences on a variety of thought leadership topics covered under this year’s conference theme, “Embracing New Business Paradigm Shifts". Conference Title: International Academic Conference 2023Conference Acronym: IAC 2023Conference Theme: Embracing New Business Paradigm ShiftsConference Date: 25-26 February 2023Conference Venue: IUMW, MalaysiaConference Organizer: International University of Malaya-Wales, Kuala Lumpur, Malaysi