On exports and economic growth

This paper focuses on a new estimate of Feder (1982)’s model on productivity and externality effect of exports in six Asian countries. Econometric issues are addressed with the use of cross-sectional analysis. The results show that the coefficients of the models reduce substantially when the analysis is adjusted for stationarity. The effect of exports on growth and productivity is found to be positively significant and the export sector is found to have a positive effect on non-export sector. However, the extent of externality effect will depend on several factors such as size, policy orientation of exports, concentration of export products and processing level of export

Tahap kecerdasan emosi pemimpin dan kepimpinan servant serta pengaruhnya terhadap pengurusan perubahan di sekolah

Effective change management is important to ensure that the organization continues to compete. However, 70 percent of program changes implemented in the organization are doomed to failure and need serious consideration, particularly in emotional intelligence and servant leadership aspects.Therefore, this study aimed to identify the influence of emotional intelligence and servant leadership on the change management in schools. In particular, it was to identify the level of change management, emotional intelligence and servant leadership, as well as to examine the significant differences of demographic factor variables, namely age, gender and administrative experience.This study used quantitative research method. Survey instruments involved Emotional Competency Inventory, Change Facilitator Style Questionnaire and Servant Leadership Scale. A total of 342 secondary school teachers in the northern region have participated in this study. Data were analyzed using ANOVA, t-test, correlation, Multiple Regression Analysis and Hierarchical Moderated Multiple Regression. The results showed there was a significant difference in emotional intelligence and servant leadership by gender but not in change management. The results also showed that no significant difference between emotional intelligence, servant leadership and change management by age and administration experience. Furthermore, it was also found that there was a positive significant relationship between emotional intelligence and servant leadership with change management in schools. Result also revealed that emotional intelligence and servant leadership is contributor for change management in schools. The results also recall that servant leadership is a moderator for the relationship between emotional intelligence and change management. In conclusion, this study provided a theoretical framework that shows the contribution aspects of emotional intelligence and servant leadership on change management in schools

Demonstrating The Use Of Vector Error Correction Models Using Simulated Data

In this paper, we demonstrate the use of time series analysis, including unit roots tests, Granger causality tests, cointergation tests and vector error correction models. We generate four time series using simulation such that the data has both a random component and a growth trend. The data are analyzed to demonstrate the use of time series analysis procedures

Dynamic adjustment towards target capital structure: Thailand evidence

By employing panel data, the present study examines the dynamic aspects of capital structure of 269 non-financial listed firms in Thailand from 2000 to 2009. This is a relatively new area in finance literature. The present study investigates the existence of target capital structure, speed of adjustment and factors affecting the speed of adjustment. The analyses are conducted using the dynamic Partial Adjustment Model (PAM) and estimated based on the Generalized Method of Moments. The results indicate the existence of target capital structure and firms undergone adjustment processes to be at their target capital structure from time to time with a considerably rapid speed of adjustment, consistent with the dynamic trade-off theory. Firms in Thailand are found to be under-adjusting, being below the required adjustment to be at the target within a year. Strong evidence exists that indicates that firm specific factors significantly influence speed of adjustment for firms in Thailand, such as distance from target, size of firm and profitability

Is Capital Structure Study Still A Puzzle? Southeast Asian Panel Data Evidence

Issues on inconclusive results in capital structure studies are still unresolved todate. Various perhaps and justifications being put forward by researchers past and present to rationalize their inconsistent findings. Different leverage definitions used in the studies is identified as one of the main factors that lead to inconsistent results recorded in the literature. Different leverage definition serves differently according to the needs of the study thus produces inconclusive findings. Different models employed also play a significant role in this issue of inconsistencies. Different natures of models employed influence greatly the results in capital structure studies throughout. The three countries selected for this study, Malaysia, Thailand and Singapore prove that inconsistent results reported within each country are due to the different definitions of leverage (six leverage measures used) as well as the different models (the static and dynamic models) employed. Inconsistencies are more rampant in the use of different leverage definitions with the same model as compared to different models with the same leverage definition. The Fixed Effect Model and Partial Adjustment Model are employed representing the static and dynamic models respectively. Therefore, the capital structure studies are still craving for one universally accepted leverage definition and also one appropriate model to satisfy the needs of in depth understanding of the relationship between capital structure decisions and value of a firm

Testing the Lucas critique in Malaysia: a comment

The advent of ’rational expectation hypothesis’ (REH) in 1970’s sparked intense debate on the effectiveness of discretionary aggregate demand policies in influencing real economic activities. In line with this, the Lucas Critique (Lucas, 1976), that embodies the REH, questions the efectiveness of policy rule that frequently adopted in the set up of monetary policy. This commentary revisited the foundations of Lucas Critique and empirical studies reported by Habibullah, Azali dan Baharumshah (2001) (in short, HAB) on the validity of the critique within the Malaysian economy. The Lucas Critique is explained in greater detail based on an economic model that incorporates the behaviours of economic agents that form their expectation rationally. Brief empirical analysis indicates that rejection of Lucas Critique as proposed by HAB requires further invesigatations before it can be a generalization

Debt and financial performance of REITs in Malaysia: an optimal debt threshold analysis

The aim of this study is to estimate the optimal debt threshold of Real Estate Investment Trusts in Malaysia (MREITs). This study uses continuous sequential threshold regression approach adopted from Bai and Perron (1998; 2003) and Perron (2006) methodologies and collaborates the threshold regression by Hansen (2001; 2015) to estimate the MREITs optimal debt threshold. In this regard, although by regulation, MREITs are allowed to use debt up to 50% of their total assets, the result of this study indicates that MREITs need to maintain a debt level of between 14.33% and 21.40%, to balance the external funding needs and the optimal level of financial performance. Given the high dividend payout requirement, and the marginal tax rate of zero, if debt is chosen as the dominant approach of obtaining external financing needs, MREITs need to carefully monitor the optimal level of debt in order to maximize the shareholders return and to avoid debt overhang problem. The finding offers a useful guide to MREITs managers in strategizing their financing decision to support their external growth needs by investing in real property

The impact of shariah-compliance extensiveness screening on the initial performance of Malaysian IPOs

This study suspects that relying on the current Shariah screening process on financial aspects by Shariah Advisory Council of Malaysia may be not sufficient as the two important ratios which are Debt ratio and ARTA ratio highlighted by Council of Islamic Fiqh Academy (CIFA) are not being used. The study observed 347 Shariah-compliant companies and 37 non-compliant Shariah companies that issued IPOs from January 1999 until December 2008. Obviously, when the Shariah IPOs samples are ranked based on the level of extensiveness, the difference in the initial returns between the most extensive Shariah IPOs and non-Shariah compliant IPOs prevails

Mean-drawdown risk behavior: drawdown risk and capital asset pricing

We develop an alternative approach based on mean-drawdown risk behavior versus the mean-variance behavior. We develop two risk measures as the maximum draw down risk and average drawdown risk to estimate two new betas and then propose two CAPM-like models. The data includes a comprehensive universe of more than 11,000 US equity-based mutual funds from first month of 2000 to third month of 2011. The evidence clearly shows superiority of the maximum and average drawdown betas and their pricing models, the maximum drawdown CAPM and the average drawdown CAPM, over the traditional beta and CAPM, respectively

Debt and financial performance of REITs in Malaysia: a moderating effect of financial flexibility

The use of debt by REITs entity seems to be a puzzle in numerous REITs literature, as REITs are tax-exempted business entities. The trade-off theory implies that the financing strategy of using debt provides no value in a REIT entity with a marginal tax rate of zero. However, high dividend pay-out requirement has limit REITs’ ability to retain its internal earnings, thus require REITs to use debt to undertake its growth strategies. This study aims to investigate the great curiosity about the debt financing decision of REITs in Malaysia (MREITs) at all given no tax shield benefit and to examine the moderating effect of financial flexibility in a relationship between debt financing and the financial performance. Using the unbalanced panel data from all MREITs for the time period between 2005 and 2014, the results of this study are consistent with the pecking order theory in explaining the MREITs debt financing decision but are less supportive of the trade-off theory on tax benefits and agency theory of free cash flow on disciplinary tools. This suggests that MREITs use debt to support the growth needs than tax motives and the high dividend pay-out requirement behaves as a “disciplinary tool,” not through the use of debt. The findings also reveal that financial flexibility plays an important role to alter the negative relationship between debt financing and financial performance to positive relationship. This study serves as a useful guide for MREITs’ managers in managing financial flexibility as it has important moderating effects on the relationship between debt financing and financial performance