THE ROLE OF FINANCIAL DEVELOPMENT ON INCOME INEQUALITY IN MALAYSIA

This study examines the role of financial development in influencing income inequality in Malaysia over the period of 1980-2000. The empirical results based on ARDL bounds test indicate that financial market development is, at best, very weak and statistically insignificant in reducing income inequality in Malaysia. The evidence is valid for a variety of financial indicators, including the banking sector, the stock market and financial aggregate variables. The evidence also highlights that besides various government¡¯s development programs, efforts should also concentrate on improving institutional quality, economic development and maintaining low inflation in its attempt to combat income inequality.Banking Sector, Capital Market, Financial Development, Income Inequality, ARDL Bounds Test

Returns predictability of Malaysian bank stocks : Evidence and implications

The main objective of this study is to address the question of whether stock prices follow random walk all the time. Using the samples of four Malaysian bank stocks- Hong Leong Bank, Malayan Banking, Public Bank and Southern Bank, coupled with the Hinich and Patterson (1995) windowed-testing procedure, the results show that the series under study follow a random walk for long periods of time, only to be interspersed with brief periods of strong linear and non-linear dependency structures. Unlike previous studies, this paper provides a different perspective on the subject of random walk. In addition to that, several important implications drawn from the findings are also provided in the paper

Financial development and income inequality at different levels of institutional quality

We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between financial development and income inequality. Financial development tends to reduce income inequality only after a certain threshold level of institutional quality has been achieved. Until then, the effect of financial development on income inequality is nonexistent. This finding suggests that institutional quality affects the link between financial development and income inequality, reflecting the notion that better quality finance results in more equal income distribution

Economic globalization and financial development in East Asia: a panel cointegration and causality analysis

This study examines the role of economic globalization in financial development in eight East Asian economies. The heterogeneous panel cointegration test reveals that cointegration is present among economic globalization, institutions, financial development, real gross domestic product per capita, and financial reforms. The Granger causality test results indicate that economic globalization has a significant causal influence on institutional quality, and institutional reforms have in turn facilitated and supported financial development, in particular of the banking sector in East Asia. Economic globalization is also found to have a favorable causal impact on stock market development without going through the institutional quality channel

Returns Predictability of Malaysian Bank Stocks: Evidence and Implications

The main objective of this study is to address the question of whether stock prices follow random walk all the time. Using the samples of four Malaysian bank stocks- Hong Leong Bank, Malayan Banking, Public Bank and Southern Bank, coupled with the Hinich and Patterson (1995) windowed-testing procedure, the results show that the series under study follow a random walk for long periods of time, only to be interspersed with brief periods of strong linear and non-linear dependency structures. Unlike previous studies, this paper provides a different perspective on the subject of random walk. In addition to that, several important implications drawn from the findings are also provided in the paper.

Clinacanthus nutans Extracts Are Antioxidant with Antiproliferative Effect on Cultured Human Cancer Cell Lines

Clinacanthus nutans Lindau leaves (CN) have been used in traditionalmedicine but the therapeutic potential has not been explored for cancer prevention and treatment. Current study aimed to evaluate the antioxidant and antiproliferative effects of CN, extracted in chloroform, methanol, and water, on cancer cell lines. Antioxidant properties of CN were evaluated using DPPH, galvinoxyl, nitric oxide, and hydrogen peroxide based radical scavenging assays, whereas the tumoricidal effect was tested on HepG2, IMR32, NCL-H23, SNU-1, Hela, LS-174T, K562, Raji, and IMR32 cancer cells using MTT assay. Our data showed that CN in chloroform extract was a good antioxidant against DPPH and galvinoxyl radicals, but less effective in negating nitric oxide and hydrogen peroxide radicals. Chloroformextract exerted the highest antiproliferative effect on K-562 (91.28±0.03%) andRaji cell lines (88.97± 1.07%) at 10

Does Financial Deepening Improve Income Distribution? A Dynamic Panel Analysis on Developing Countries

This study examines the dynamic effects of financial deepening on income distribution of 35 developing countries during the past two decades of 1980-2000. For this purpose, three existing alternative hypotheses concerning the finance-inequality nexus are tested based on the newly assembled measure of income distribution. The empirical results based on the dynamic panel data technique of General Method of Movement (GMM) suggest that financial deepening significantly reduces income inequality in developing countries. This evidence supports the hypothesis of inequality-narrowing in general. Nonetheless, income inequality responds differently to different financial factors. While the impact is significant from the banking sector, the equity market has no important role to play in this regard. The inverted U-shape finance-inequality relationship is not observed in these nations; instead, a U-shape relationship is detected. These results show that financial deepening reduces income inequality when the private sector credit of the country is below a threshold level. Countries with private sector credit higher than the threshold, on the other hand, will tend to experience a deterioration of their income inequality.Financial deepening; Income inequality; Gini coefficient; Dynamic panel analysis; GMM

Financial liberalization in ASEAN and the fisher hypothesis

This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and Thailand. Thus, the assumption of a stable real interest rate appears to have empirical support for these low-inflation economies. We also demonstrate that inflation rate is both weakly and strongly exogenous in these three systems. However, the weak form of the hypothesis is decisively rejected for the inflation prone countries like the Philippines and Indonesia. In general, our results suggest that in a deregulated environments real interest rate is insulated from nominal shocks and money is neutra

A Review of Problem and Approaches to the University Students in Malaysia Toward Using Wearable Fitness Technology

Wearable fitness technology (WFT) is a device worn physically on the human wrist to track body activity through the calculation of one's heart rate and calories burned from the number of footsteps walked. Users of WFT utilise the device for the monitoring of body fitness. As WFT devices are popularly owned, the adoptive behaviour needed further understanding. Therefore, the attempt to extend the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) with additional determinants retrieved from aesthetics appeal would further examine the use of WFT. A recent study of Malaysian University students found that the general prevalence of university students' obesity is higher than in other Asia countries. This study focuses on investigating Malaysian university students' adoptive behaviour and factors contributing to sustained use of WFT. The use of UTAUT2 with aesthetics appeal perceived the outcome of students' physical health as the significant result in relation to adoptive behaviour and sustained use of WFT. Problem confronting by the country of university students’ obesity must be addressed meticulously. Shaping the future of healthy lifestyle and self-care advocacy is essential through the assistant of technology