The impact of foreign direct investment on economic growth in Malaysia / Masturah Ma’in and Siti Sarah Mat Isa

This study analyzes the impact of Foreign Direct Investment (FDI) on economic growth in Malaysia. The Auto-Regressive Distributed Lag (ARDL) method is used to investigate the long-run relationship between FDI and economic growth. The controlled variables are life expectancy, gross fixed capital formation and population growth. The bound test suggests that FDI, life expectancy, gross fixed capital formation and population growth have a long-run relationship with economic growth. This is supported by the significant correction term, which confirms the existence of a long-run relationship. However, as FDI, life expectancy and gross fixed capital formation have positive impact on Malaysia’s economic growth, population on the other hand, shows otherwise

Off-balance sheet income activities for islamic and conventional banks / Masturah Ma’in, Latifah Syaqirah Misni and Siti Sarah Mat Isa.

The aim of this study is to investigate the determinants of off-balanced sheet income activities, considering the bank-specific and macroeconomic factors as independent variables in Islamic and conventional banks in Malaysia. This study utilizes 16 Islamic banks and 14 conventonal banks panel data from 2008-2013 and 2002-2013 respectively. The result shows that the determinants of off-balance sheet activities in Islamic banks in Malaysia are bank’s size (TA), bank’s profitability (NP), and interest rate (INT). While, the determinants of off-balance sheet activities in conventional banks are bank’s size (TA), bank’s profitability (NP) and the Real Gross Domestic Product (RGDP)

Investment, Islamic bank and financial design from Malaysian listed firms

This paper examines the link between financial design and Islamic bank variables on firm investment.It is aimed to support additional empirical evidence based on previous studies.The firm-level data for Malaysian Shariah listed firms between 2000 and 2010 are used.This paper utilizes the estimation method from generalised method of moments for dynamic panel data, as proposed by Arellano and Bover (1995).The findings show that: first, the investment of Shariah listed firms are positively related to the development of the banking system and the capital market. Second, the cash flow shows a negative impact on investment of firms. Third, the debt asset ratio has a negative impact on firm investment.Fourth, Bai’ Bithaman Ajil and Ijarah financing show a negative effect on investment of firm. Fifth, the zakah variable shows a mixed result on firm investment

Investment and Economic Indicators in Malaysia

This study is to investigate the relationship between economic indicators and investment in Malaysia using secondary data spanned through 1982-2015. This study employs an empirical analysis by adapting the unit root test, Johansen co-integration test and vector error correction model (VECM) to determine the short-run and long run effect among variables. The cointegrating test indicates that investment is significantly related to the trade openness, GDP and population. Based on the VECM results, the findings show that a long run relationship exists between the trade openness and investment in Malaysia. Hence, these reveal that it is important for the Malaysian government to enhance the economic policy in liberalizing foreign trade in order to encourage more investments

Investment and Enconomic Indicators in Malaysia / Masturah Ma’in, Norfaiezah Nordin, Izza Hazira Zailan, Saliza Sulaiman, Zuraidah Ismail

This study is to investigate the relationship between economic indicators and investment in Malaysia using secondary data spanned through 1982-2015. This study employs an empirical analysis by adapting the unit root test, Johansen co-integration test and vector error correction model (VECM) to determine the short-run and long run effect among variables. The cointegrating test indicates that investment is significantly related to the trade openness, GDP and population. Based on the VECM results, the findings show that a long run relationship exists between the trade openness and investment in Malaysia. Hence, these reveal that it is important for the Malaysian government to enhance the economic policy in liberalizing foreign trade in order to encourage more investments

Macroprudential policy in Malaysia: Implications, key measures and experiences / Sutina Junos...[et al.]

Macroprudential policy is a set of measures and institutional that is specifically aimed at containing systemic risks and maintaining financial stability in a country. In Malaysia, the development of the macroprudential policy framework started and gained its momentum after the Asian financial crisis where macroprudential policy instruments are used to manage excesses and imbalances in the financial system and in managing capital flows. The implementation of this policy has been strengthening by Bank Negara Malaysia after Global financial Crisis in order to achieve the objectives of ensuring financial system stability, addressing procyclicality and mitigate the systemic risk. This paper discusses the Malaysia’s experiences in macroprudential policy and the implications in terms of the oversight of macroprudential conditions and the development and application of policy tool

Islamic banks’ fee income, characteristics and risk: Panel data analysis evidence from Indonesia / Siti Sarah Mat Isa, Masturah Ma’in and Azlina Hanif.

One of the non-operating income in Islamic banking operation, which is fee income has become progressively vital in expanding their income to counter decreasing net earnings due to rivalry from other financial competitors. However, it is important for Islamic banks to find out any potential risk that will distress their performance due to this activity. This is because, mixed results on this issue derived from the previous studies especially in the Western context such as in the US, Germany and other European countries. Using Indonesian Islamic bank’s quarter data between 2009 and 2013, this study adopts the panel data regression analysis to examine the relationship between Indonesian Islamic banks fee income and risk. The empirical results signified that fee income activities able to reduce Indonesian Islamic bank’s risk

Impact of Environmental, Social, and Governance (ESG), Profitability and Macroeconomics Indicators on Firm Performance

Firms that are ESG compliant have better governance, care more about the environment and sustainable development, have lower profits volatility and access to lower-cost funding.  Many investors can easily make judgment based on firm performance rather than financial success if ESG is incorporated into a firm's investment decision. The purpose of this study is to examine the relationship between ESG score, profitability, growth domestic product (GDP) growth, labor force, and population with Malaysian firms’ performance. A multiple regression technique is used to estimate the ordinary least square (OLS) method from year 2010 to 2020. The result identifies that ESG score, GDP growth, and population has significant relationship with firm performance. Research paper Keywords: Firm Performance; ESG; Profitability; Macroeconomic Indicators; Malaysia Reference to this paper should be made as follows: Ma’in, M., Asmuni, S., Junos, S., Rostam, S. N., Azmi, N. H. A., & Sahidza, K. R. (2022). Impact of Environmental, Social, and Governance (ESG), Profitability and Macroeconomics Indicators on Firm Performance. Journal of Entrepreneurship, Business and Economics, 10(2), 1–17

Impact of Environmental, Social, and Governance (ESG), Profitability and Macroeconomics Indicators on Firm Performance

Firms that are ESG compliant have better governance, care more about the environment and sustainable development, have lower profits volatility and access to lower-cost funding.  Many investors can easily make judgment based on firm performance rather than financial success if ESG is incorporated into a firm's investment decision. The purpose of this study is to examine the relationship between ESG score, profitability, growth domestic product (GDP) growth, labor force, and population with Malaysian firms’ performance. A multiple regression technique is used to estimate the ordinary least square (OLS) method from year 2010 to 2020. The result identifies that ESG score, GDP growth, and population has significant relationship with firm performance. Research paper Keywords: Firm Performance; ESG; Profitability; Macroeconomic Indicators; Malaysia Reference to this paper should be made as follows: Ma’in, M., Asmuni, S., Junos, S., Rostam, S. N., Azmi, N. H. A., & Sahidza, K. R. (2022). Impact of Environmental, Social, and Governance (ESG), Profitability and Macroeconomics Indicators on Firm Performance. Journal of Entrepreneurship, Business and Economics, 10(2), 1–17