The effect of enterprise risk management on firm value: evidence from Malaysian technology firms

This paper aims to examine the relationship between ERM and firm value in Malaysia. In the past literature, ERM had been argued to increase firm value but empirical evidence shows mixed and inconclusive results. Using sample from 2004 to 2012, this paper furthers the analysis on the relationship between ERM and firm performance among technology firms in Malaysia. Indeed, technology industry is the fastest growing and a volatile industry, which requires continuous innovation. These make technology firms more prone to risk exposure. In analyzing this issue, dynamic panel data is employed to allow cross-sectional and time series analysis. Our results show that the implementation of ERM in the previous year has strong negative relationship with firm value at 1 percent significance level. It supports the argument that the effect of ERM is not immediately realized as well as entails high implementation cost. The findings provide useful input and insight in formulating new policy in relation to corporate governance, particularly ERM in Malaysia

PENENTU PEMILIKAN TAKAFUL MIKRO DALAM KALANGAN KUMPULAN BERPENDAPATAN RENDAH

Polisi takaful yang berkonsepkan takaful mikro sudah lama diperkenalkan di Malaysia. Rasional kepada pembangunan konsep takaful mikro ialah untuk memastikan setiap lapisan masyarakat di Malaysia mampu memiliki perlindungan takaful, khususnya mereka yang berpendapatan rendah seperti B40. Namun begitu, pemilikan perlindungan takaful atau insurans dalam kalangan B40 masih amat rendah iaitu 4% sahaja. Oleh itu, kajian ini bertujuan untuk mengkaji penentu kepada pemilikan takaful mikro dalam kalangan B40. Sampel kajian ini terdiri daripada 150 responden yang dipilih berdasarkan kaedah pensampelan tidak berkebarangkalian bertujuan. Hasil regresi logistik menunjukkan kesan positif perkhidmatan syarikat ke atas pemilikan polisi takaful mikro dalam kalangan B40. Walau bagaimanapun faktor lain seperti kemampuan kewangan, tahap pengetahuan, kebolehcapaian, dan pengaruh persekitaran didapati tidak mempengaruhi pemilikan takaful mikro. Hasil kajian ini diharapkan dapat memberi input kepada pengendali takaful khususnya dan industri insurans dan takaful amnya dalam memperkemaskan dan mempertingkatkan kualiti perkhidmatan mereka bagi menggalakkan pembelian takaful mikro dalam kalangan B40. Usaha dan kerjasama daripada pihak pengendali takaful dalam menggalakkan isi rumah B40 membeli takaful mikro sangat diperlukan bagi menjadikan isi rumah B40 lebih berdaya tahan terhadap kejutan ekonomi yang berlaku dan seterusnya meningkatkan taraf hidup mereka ke arah masyarakat kelas menengah. Kata Kunci: B40, logistik, pemilikan, perkhidmatan, takaful   ABSTRACT Takaful policy based on the concept of micro takaful has been long introduced in Malaysia. The rational behind the development of micro takaful concept is to ensure each level of society in Malaysia would be able to have takaful protection, especially the low-income group such as B40. However, the ownership of family takaful or insurance protection plan among B40 remain low, at 4%. Therefore, this study attempts to examine the determinants of micro takaful ownership among low-income groups, known as B40. The sample of this study is 150 respondents, which is chosen based on purposive nonprobability sampling method. The logistic regression results show positive effect of company services towards micro takaful ownership among the B40. However, other factors such as financial capability, knowledge level, accessibility, and environmental factor do not influence the ownership of micro takaful. The results offer inputs for takaful operators in particular, and insurance and takaful industry, in general, to streamline and enhance service quality to promote the purchase of micro takaful among the B40. The efforts and cooperation from the takaful operators to encourage the B40 households to purchase micro takaful are essential to make B40 households more resilient against the economic shocks, and subsequently, improve their living standards towards middle-class society.   Keywords: B40, logistic, ownership, services, takaful   Cite as: Hafizuddin-Syah, B. A. M, Yakob, R., & Ruslee, A. A. (2019). Penentu pemilikan takaful mikro dalam kalangan kumpulan berpendapatan rendah [The determinant of microtakaful ownership among low income earners]. Journal of Nusantara Studies, 4(2), 101-125. http://dx.doi.org/10.24200/jonus.vol4iss2pp101-125 &nbsp

Indeks sara hidup pelajar: kajian kes di Kolej Pendidikan Antarabangsa (INTEC)

Peluang belajar ke institusi pengajian tinggi (IPT) merupakan sesuatu yang diidamkan oleh kebanyakan pelajar. Walau bagaimanapun, kehidupan sebagai pelajar di IPT agak mencabar terutama dari segi kelangsungan hidup. Ini termasuklah isu kos sara hidup yang memberi impak kepada pelajar bagi memenuhi keperluan asas harian, dalam situasi ekonomi yang tidak menentu pada masa kini. Persoalannya adalah adakah pelajar-pelajar mempunyai jumlah kewangan yang mencukupi untuk menampung semua perbelanjaan di kampus? Maka, kajian ini bertujuan untuk mengira indeks sara hidup pelajar di IPT. Indeks yang dikira berupaya menggambarkan kedudukan kewangan yang merangkumi aspek pendapatan dan perbelanjaan pelajar. Kolej Pendidikan Antarabangsa (INTEC), Shah Alam telah di pilih sebagai sampel kajian untuk mendapatkan data melalui borang soal selidik. Hasil kajian menunjukkan bahawa majoriti pelajar (90%) mendapat sumber kewangan daripada ibu bapa mereka. Selain itu, 74% pelajar memperoleh biasiswa dan hanya 14% pelajar mendapat pinjaman. Dari segi pendapatan, jumlah pendapatan pelajar per bulan ialah RM89, 330 dengan purata RM1786.60 per pelajar. Manakala, jumlah perbelanjaan per bulan ialah RM54, 281 dengan purata RM1085.62 per pelajar. Perbelanjaan tertinggi yang dihadapi oleh pelajar ialah yuran pengajian dengan jumlah purata sebanyak RM2031.94 per pelajar. Selain daripada berbelanja ke atas barangan asas, pelajar juga didapati memperuntukan sejumlah wang mereka untuk hiburan. Kajian juga mendapati bahawa indeks sara hidup pelajar di INTEC ialah 0.61. Keadaan ini menunjukkan bahawa pendapatan yang dimiliki oleh para pelajar masih mencukupi untuk menampung perbelanjaan mereka. Indeks ini dijangkakan meningkat kerana indeks sara hidup sangat bergantung dengan kos sara hidup semasa yang semakin hari semakin tinggi. Hasil kajian diharapkan memberikan gambaran yang jelas kepada pelajar untuk membuat persediaan kewangan yang mencukupi. Bagi pengurusan universiti, indeks sara hidup pelajar boleh menjadi tanda aras dalam pembuatan keputusan dan perlaksanaan strategi terutamanya yang melibatkan komitmen kewangan agar ianya tidak terlalu membebankan para pelajar

Ramalan berstokastik terhadap potensi takaful wakaf dalam meningkatkan dana wakaf tunai

Takaful waqf is one of the collection methods to increase the amount of cash waqf in Malaysia. Meanwhile, a takaful plan is an economic mechanism that has been proven to minimize the financial risk of takaful participants. However, the ability of the takaful plan to increase the waqf collection through takaful waqf remains questionable. Therefore, this study aims to predict the potential of takaful waqf objectively and calculate the probability of the potential accessibility of takaful waqf plans in increasing the collection of cash waqf funds. This study uses secondary data obtained from the Department of Statistics Malaysia, Syarikat Takful Ikhlas, Malaysian Takaful Association and Bank Negara Malaysia. The potential of takaful waqf is calculated based on several models with certain assumptions using stochastic values through the Monte Carlo Simulation Method. This study proves that takaful operators can employ two models to increase cash waqf collection through takaful waqf. The first model assumes waqf collection is subject to the death of a motor takaful participant. If the entire motor takaful operators participate, the potential collection could reach up to RM1 million. At 90% accessibility, this model predicts a cash waqf collection of RM907,000. Meanwhile, the second model which presumes that waqf benefits are obtained from a 1-3% deduction from the takaful contribution of each participant and enrollment from all motor takaful operators provides much better potential. This model estimates cash waqf collection up to RM83 million and at 90% accessibility this model predicts cash waqf collection of RM41 million. The results of this study could assist the waqf and takaful authorities in formulating more objective strategic plans to ensure the sustainability and continuity of the takaful waqf pla

Conceptualizing financial risk and investment diversification towards the efficiency of waqf institutions in Malaysia

This study aims to conceptualize on how financial risks i.e., liquidity and credit risk, and investment diversification relate to waqf institution’s efficiency in Malaysia. Past studies were reviewed to identify the relevant theories and empirical evidence relating to efficiency, liquidity risk, credit risk and investment diversification. Conceptually, it is found that the inefficiency of waqf institutions in managing its waqf property is mainly due to the exposure of liquidity and credit risk. However, investment diversification strategies allow waqf institutions to generate higher potential returns and subsequently enhance its financial resources. Thus, diverse investment portfolio could moderate the impact of liquidity and credit risk on the efficiency of waqf institutions. In fact, waqf institution’s efficiency has been rarely examined in studies due to its unique operation and the absence of accurate measurement. This research proposes a framework that is the first to link the efficiency of the waqf institution with financial risk, and investment diversification as a moderator. This could be an impetus for future empirical research. Indeed, the framework has indirectly emphasized the importance of risk management for waqf institutions