Search results

1 – 10 of 45
To view the access options for this content please click here
Article
Publication date: 2 October 2020

Xiu Wei Yeap, Hooi Hooi Lean, Marius Galabe Sampid and Haslifah Mohamad Hasim

This paper investigates the dependence structure and market risk of the currency exchange rate portfolio from the Malaysian ringgit perspective.

Abstract

Purpose

This paper investigates the dependence structure and market risk of the currency exchange rate portfolio from the Malaysian ringgit perspective.

Design/methodology/approach

The marginal return of the five major exchange rates series, i.e. United States dollar (USD), Japanese yen (JPY), Singapore dollar (SGD), Thai baht (THB) and Chinese Yuan Renminbi (CNY) are modelled by the Bayesian generalized autoregressive conditional heteroskedasticity (GARCH) (1,1) model with Student's t innovations. In addition, five different copulas, such as Gumbel, Clayton, Frank, Gaussian and Student's t, are applied for modelling the joint distribution for examining the dependence structure of the five currencies. Moreover, the portfolio risk is measured by Value at Risk (VaR) that considers the extreme events through the extreme value theory (EVT).

Findings

The finding shows that Gumbel and Student's t are the best-fitted Archimedean and elliptical copulas, for the five currencies. The dependence structure is asymmetric and heavy tailed.

Research limitations/implications

The findings of this paper have important implications for diversification decision and hedging problems for investors who involving in foreign currencies. The authors found that the portfolio is diversified with the consideration of extreme events. Therefore, investors who are holding an individual currency with VaR higher than the portfolio may consider adding other currencies used in this paper for hedging.

Originality/value

This is the first paper estimating VaR of a currency exchange rate portfolio using a combination of Bayesian GARCH model, EVT and copula theory. Moreover, the VaR of the currency exchange rate portfolio can be used as a benchmark of the currency exchange market risk.

Details

International Journal of Emerging Markets, vol. 16 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

To view the access options for this content please click here
Article
Publication date: 5 June 2017

Ramez Abubakr Badeeb and Hooi Hooi Lean

This paper aims to examine the validity of the question of whether oil dependence has a negative impact on the relationship between financial development and economic…

Abstract

Purpose

This paper aims to examine the validity of the question of whether oil dependence has a negative impact on the relationship between financial development and economic growth in Yemen.

Design/methodology/approach

The auto-regressive distributed lag approach for cointegration is used to examine the relationship between financial development and economic growth by capturing the impact of oil dependence on this relationship. The Granger causality test, based on a vector error correction model (VECM) framework, is used to investigate the causal relationships between financial development and economic growth.

Findings

The most interesting finding is the negative sign of interaction term between financial development and oil dependence, which implies that the positive effect of financial development on economic growth decreases with the increasing oil dependence. The result of the VECM Granger causality test revealed the existence of unidirectional causality running from financial development to economic growth.

Research limitations/implications

The short sample period and the worry of losing degrees of freedom limited us when including control variables in the model. If the data are available in the future, other control variables can be added.

Practical implications

The government should reduce the level of oil dependence in Yemen by diversifying the country’s economy. Accelerating the pace and efficiency of the financial sector will bear fruitful returns in this regard. The government could achieve this strategy by playing a more proactive role in encouraging the expansion of credit to enable the financial sector to provide a more efficient intermediary role in mobilizing domestic savings and channeling them to productive investments across various economic sectors.

Originality/value

This is the first study to examine the impact of oil dependence on the finance-growth nexus in Yemen. A new indicator for oil dependence is also proposed.

Details

Studies in Economics and Finance, vol. 34 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

To view the access options for this content please click here
Article
Publication date: 15 March 2019

Hassan F. Gholipour, Hooi Hooi Lean, Reza Tajaddini and Anh Khoi Pham

The purpose of this study is to examine the impact that foreign investment in existing houses and new housing development has on residential house prices and the growth of…

Abstract

Purpose

The purpose of this study is to examine the impact that foreign investment in existing houses and new housing development has on residential house prices and the growth of the housing construction sector.

Design/methodology/approach

The analysis is based on a panel cointegration method, estimated using annual data for all Australian states and territories spanning the period of 1990-2013.

Findings

The results indicate that increases in foreign investment in existing houses do not significantly lead to increases in house prices. On the other hand, a 10 per cent increase in foreign investment for housing development decreases house prices by 1.95 per cent. We also find that foreign real estate investments have a positive impact on housing construction activities in the long run.

Originality/value

Existing studies used aggregate foreign real estate investment in their analyses. As foreign investment in existing houses and foreign investment for housing development have different impacts on the demand and supply sides of housing market, it is crucial that the analysis of the effects of foreign investment in residential properties on real estate market is conducted for each type differently.

Details

International Journal of Housing Markets and Analysis, vol. 12 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 2016

Irene Wei Kiong Ting, Hooi Hooi Lean, Qian Long Kweh and Noor Azlinna Azizan

The purpose of this paper is to investigate the impact of managerial overconfidence on corporate financing decision and the moderating effect of government ownership on…

Abstract

Purpose

The purpose of this paper is to investigate the impact of managerial overconfidence on corporate financing decision and the moderating effect of government ownership on the relationship between managerial overconfidence and corporate financing decision.

Design/methodology/approach

Pooled OLS, fixed effect models (FEM), and Tobit regressions are employed to examine the relationship between managerial overconfidence, government ownership and corporate financing decision of publicly listed companies in Malaysia for the period of 2002-2011.

Findings

The authors conclude that: first, CEO overconfidence is significantly and negatively related to corporate financing decision; second, a higher degree of managerial overconfidence would result in lower leverage in GLCs, whereas the effect does not significantly exist in NGLCs; third, a larger ownership of government in a firm will reduce the negative effect of managerial overconfidence on corporate financing decision; fourth, the moderating effect of government ownership on the association between managerial overconfidence and corporate financing decision in GLCs is more effective than NGLCs; and fifth, government intervention plays its role as moderating effect on the relationship between managerial overconfidence and corporate financing decision in firms with lower ownership concentration but not in firms with high ownership concentration (more or equal than 50 percent).

Practical implications

The finding implies that the moderating effect of government ownership on the association between managerial overconfidence and corporate financing decision in GLCs is more effective than NGLCs.

Originality/value

The authors make the first attempt to test the moderating effect of government ownership on the relationship between ownership concentration and corporate financing decision.

Details

International Journal of Managerial Finance, vol. 12 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

To view the access options for this content please click here
Article
Publication date: 16 October 2009

Irene Wei Kiong Ting and Hooi Hooi Lean

This paper aims to examine the intellectual capital performance and its relationship with financial performance of financial institutions in Malaysia for the period 1999 to 2007.

Abstract

Purpose

This paper aims to examine the intellectual capital performance and its relationship with financial performance of financial institutions in Malaysia for the period 1999 to 2007.

Design/methodology/approach

The value added intellectual coefficient (VAICTM) by Pulic is used.

Findings

The paper reveals that VAIC and ROA are positively related among Malaysia's finance sector. The results also show that the three components of VAIC are associated with profitability with the explanatory power of 71.6 per cent.

Research limitations/implications

This study does not cover all finance companies in Malaysia due to limited data. Future study should therefore further improve on the aspect of coverage.

Practical implications

The findings may serve as a useful input for bankers to apply knowledge management in their institutions. Furthermore, the financial institutions may have more definite understanding of the composition of intellectual capital and evaluate its developing tendency periodically.

Originality/value

This is the first paper that examines the relationship of VAIC and firm's profitability for companies listed in the Bursa Malaysia finance sector.

Details

Journal of Intellectual Capital, vol. 10 no. 4
Type: Research Article
ISSN: 1469-1930

Keywords

To view the access options for this content please click here
Article
Publication date: 6 February 2009

Hooi Hooi Lean and Yingzhe Song

The purpose of this paper is to examine the relationship between the growth of domestic savings and economic growth in China.

Abstract

Purpose

The purpose of this paper is to examine the relationship between the growth of domestic savings and economic growth in China.

Design/methodology/approach

Cointegration and causality tests cover the country as a whole and four of selected representative provinces for the period of 1955‐2004.

Findings

China's economic growth is found to have a long‐running relationship with household savings and enterprise savings. Bilateral causality exists between the domestic savings growth and the economic growth in the short‐run. In the long‐run, a unidirectional causality exists running from the domestic savings growth to the economic growth. However, the provinces show a different statistical relationship between these two variables.

Research limitations/implications

The data are not up to date and are limited to the annual frequency.

Practical implications

It would be useful to the policy makers to understand the dynamics involved and where necessary, to make adjustments to the prevailing and future economic policies in order to achieve the rapid and desired economic development and sustainable economic growth.

Originality/value

The paper assesses the cointegration and causality relationship between the growth of domestic savings and economic growth in China.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 2 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

To view the access options for this content please click here
Article
Publication date: 28 January 2014

Tze-Haw Chan, Hooi Hooi Lean and Chee-Wooi Hooy

– This paper aims to focus on the impact of China's export expansion on Malaysian monthly trading with to her 12 major trading partners over the liberalization era.

Abstract

Purpose

This paper aims to focus on the impact of China's export expansion on Malaysian monthly trading with to her 12 major trading partners over the liberalization era.

Design/methodology/approach

The analytical framework comprises of both the export and trade balance models. Unit root and cointegration tests with break and error correction modeling are employed in the analyses.

Findings

Regime shifts are evident in the long run where structural break(s) found mostly coincides with the Asia crisis and China's accession into WTO. While the income effects are more apparent in most cases, the real exchanges are rather insignificant and incorrectly signed for Malaysian bilateral trading. Besides, the trade balance estimation is generally more consistent that the Chinese exports have exhibited complementary effects in the long-run, mainly for advanced export destination such as Australia, Germany, Japan, the UK and the USA. On the whole, there is insufficient evidence to support the “PRC competitive threat”.

Practical implications

The empirical evidence disfavors currency devaluation for current account correction and reveals that the fear for China effect might be over-projected. Closer regional collaboration and trade integration between the two nations are well expected.

Originality/value

The paper assesses the China's crowding out effect and magnitudes of Malaysian export and trade balance elasticities with model specifications that consider structural breaks. The paper also assesses the macro dimension of income and real exchanges effects.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 7 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Content available
Article
Publication date: 2 October 2009

Abstract

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 2 no. 3
Type: Research Article
ISSN: 1754-4408

To view the access options for this content please click here
Article
Publication date: 13 August 2020

Rayenda Khresna Brahmana, Hui Wei You and Maria Kontesa

This research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an…

Abstract

Purpose

This research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory.

Design/methodology/approach

This study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue.

Findings

The results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size.

Research limitations/implications

The findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly.

Originality/value

This study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context.

Details

Journal of Strategy and Management, vol. 14 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Content available
Article
Publication date: 8 June 2021

Christian Acuña-Opazo and Oscar Contreras González

The purpose of this paper is to analyse the direct impacts on financial performance and the added value of production in family businesses, considering the efficiency of…

Abstract

Purpose

The purpose of this paper is to analyse the direct impacts on financial performance and the added value of production in family businesses, considering the efficiency of intellectual capital as determining variables.

Design/methodology/approach

A comparative analysis between family businesses (FB) and non-family businesses (NFB) is proposed to explore significant differences in the impacts on financial performance and added value of companies, through multivariate techniques. It contributes to the literature on the family business, and its performance from an analytical framework that incorporates the theory of intellectual capital and the measurement of its impact.

Findings

The findings show that the value-added coefficient of intellectual capital (VAICTM) is a determining factor in the financial performance of companies and, to a greater extent, in the FB than in their NFB counterparts. It is also verified that the efficiency of intellectual capital in the FB has a direct and greater relationship with the value added of production (VAEmp), with respect to non-family businesses, being an important factor in predicting the performance of companies.

Practical implications

The findings allow us to conclude the importance of efficient management of intangible factors in companies, such as intellectual capital, becoming a competitive advantage factor.

Originality/value

The document explores the relationship and impact of VAICTM in family businesses that belong to an emerging economy and demonstrates the existence of differences between FB and NFB, at the level of intangible factors under a comparative analysis.

Details

Journal of Economics, Finance and Administrative Science, vol. 26 no. 51
Type: Research Article
ISSN: 2077-1886

Keywords

1 – 10 of 45