Pub Date : 2022-04-01DOI: 10.17576/jem-2021-5601-03
Q. Zaman
This paper aims to investigate the link between Corporate Social Responsibility (CSR) and Zero Leverage (ZL) policy of firms. We use panel logistic multivariate regression to determine the socially responsible behavior of ZL firms and their levered counterparts. Our proxies for CSR are corporate social responsibility disclosure and corporate tax contribution against the proxies of ZL and almost zero-leverage (AZL). The sample firm-year observations of Pakistani listed firms from 2009-2018 are further divided in subsamples for short term ZL and long term ZL firms. We also test the constraints hypothesis for our sample firms. We found that CSR and ZL policy complement each other, adding to the firm's financial and social sustainability. The positive relationship between CSR and ZL is more significant in dividend-paying firms. Further, results support that financially unconstrained socially responsible firms have more probability to choose ZL or AZL policy. This study provides initial evidence regarding the relationship between CSR behavior and ZL policy of firms. Further, this study is the pioneer to introduce tax contribution as a proxy of CSR.
{"title":"Corporate Social Responsibility and Zero Leverage","authors":"Q. Zaman","doi":"10.17576/jem-2021-5601-03","DOIUrl":"https://doi.org/10.17576/jem-2021-5601-03","url":null,"abstract":"This paper aims to investigate the link between Corporate Social Responsibility (CSR) and Zero Leverage (ZL) policy of firms. We use panel logistic multivariate regression to determine the socially responsible behavior of ZL firms and their levered counterparts. Our proxies for CSR are corporate social responsibility disclosure and corporate tax contribution against the proxies of ZL and almost zero-leverage (AZL). The sample firm-year observations of Pakistani listed firms from 2009-2018 are further divided in subsamples for short term ZL and long term ZL firms. We also test the constraints hypothesis for our sample firms. We found that CSR and ZL policy complement each other, adding to the firm's financial and social sustainability. The positive relationship between CSR and ZL is more significant in dividend-paying firms. Further, results support that financially unconstrained socially responsible firms have more probability to choose ZL or AZL policy. This study provides initial evidence regarding the relationship between CSR behavior and ZL policy of firms. Further, this study is the pioneer to introduce tax contribution as a proxy of CSR.","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90745674","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-01DOI: 10.17576/jem-2022-5601-01
Nurul Syafiza, Chen Nan, B. Talib, N. Salleh
This study analyzes the level of technical efficiency of paddy farming. It based on stratified randon sampling of 285 Malaysian paddy farmers under the management of the Muda Agricultural Developement Authority. Data was analyzed using Ordinary Least Squares and Stochastic Frontier Analysis method in the Cobb-Douglas production function. We estimated the paddy farming technical efficiency and its determinants. The results indicate that the Cobb-Douglas model with distribution of half-normal is better than the truncated normal as the average technical efficiency of the former is 0.855 and relatively higher than 0.624 in the latter. While the paddy income, the household income and the operational costs help to improve efficiency, the cultivation size, number of workers and land rent are associated with deterioration in efficiency. The input-output relationship further show that the cultivation size, number of workers, seeds and machinery used improve the output.. The study in consequence recommended policies that will ensure the cost of productive inputs such as machinery cost and land rent are affordable to farmers. Moreover, these policies may also improve households’ income through better pricing for their outputs and reduction in technical inefficiencies in paddy production.
{"title":"Kecekapan Teknikal Pertanian Padi dan Faktor Penentu: Model Pengeluaran Sempadan Stokastik","authors":"Nurul Syafiza, Chen Nan, B. Talib, N. Salleh","doi":"10.17576/jem-2022-5601-01","DOIUrl":"https://doi.org/10.17576/jem-2022-5601-01","url":null,"abstract":"This study analyzes the level of technical efficiency of paddy farming. It based on stratified randon sampling of 285 Malaysian paddy farmers under the management of the Muda Agricultural Developement Authority. Data was analyzed using Ordinary Least Squares and Stochastic Frontier Analysis method in the Cobb-Douglas production function. We estimated the paddy farming technical efficiency and its determinants. The results indicate that the Cobb-Douglas model with distribution of half-normal is better than the truncated normal as the average technical efficiency of the former is 0.855 and relatively higher than 0.624 in the latter. While the paddy income, the household income and the operational costs help to improve efficiency, the cultivation size, number of workers and land rent are associated with deterioration in efficiency. The input-output relationship further show that the cultivation size, number of workers, seeds and machinery used improve the output.. The study in consequence recommended policies that will ensure the cost of productive inputs such as machinery cost and land rent are affordable to farmers. Moreover, these policies may also improve households’ income through better pricing for their outputs and reduction in technical inefficiencies in paddy production.","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83281000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-01DOI: 10.17576/jem-2022-5601-11
Thuy N. Tran
The paper examines the association between financial market volatility and actual economic incidents. We specifically analyze the statistical characteristics of the stock price series and its association with the financial cycle. Using 20 years of Vietnamese main stock VNIndex daily data from 2 August 2000 to 31 December 2020, we select the most adequate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) family models and corresponding distribution rules. The paper initially assesses several types of GARCH models’ criteria, namely the log-likelihood, AIC and BIC, in choosing the best model to illustrate the financial cycle. We further use three different distribution rules, namely the normal distribution rule, the Student-t statistic distribution, and the Generalized Error Distribution (GED), in selecting the best GARCH model. The results show that Exponential Generalized Autoregressive Conditional Heteroscedastic (EGARCH) with student-t statistic distribution seems the best suited to demonstrate the stock price and its return volatility. It also suits the marginal distribution of the financial cycle. Our study further validates the lead time and volatility between the selected model results and the significant financial events using the turning point and Bull-Bear application (Lunde and Timmermann, 2004). Although the recommended model has shown no evidence as an effective forecast tool for the financial cycle in long run, this study paves the way for extensive research in the future.
{"title":"The Volatility of the Stock Market and Financial Cycle: GARCH Family Models","authors":"Thuy N. Tran","doi":"10.17576/jem-2022-5601-11","DOIUrl":"https://doi.org/10.17576/jem-2022-5601-11","url":null,"abstract":"The paper examines the association between financial market volatility and actual economic incidents. We specifically analyze the statistical characteristics of the stock price series and its association with the financial cycle. Using 20 years of Vietnamese main stock VNIndex daily data from 2 August 2000 to 31 December 2020, we select the most adequate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) family models and corresponding distribution rules. The paper initially assesses several types of GARCH models’ criteria, namely the log-likelihood, AIC and BIC, in choosing the best model to illustrate the financial cycle. We further use three different distribution rules, namely the normal distribution rule, the Student-t statistic distribution, and the Generalized Error Distribution (GED), in selecting the best GARCH model. The results show that Exponential Generalized Autoregressive Conditional Heteroscedastic (EGARCH) with student-t statistic distribution seems the best suited to demonstrate the stock price and its return volatility. It also suits the marginal distribution of the financial cycle. Our study further validates the lead time and volatility between the selected model results and the significant financial events using the turning point and Bull-Bear application (Lunde and Timmermann, 2004). Although the recommended model has shown no evidence as an effective forecast tool for the financial cycle in long run, this study paves the way for extensive research in the future.","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75946268","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-01DOI: 10.17576/jem-2022-5601-07
Kabiru Kamalu, Z. Abidin
The paper evaluates the influence of institutional quality on human development in 14 developing countries using data over 1991-2019. We employed the Dynamic Common Correlated Effect method that accounts for heterogeneity and cross-sectional dependency associated with panel data, due to unobserved common factors. The findings revealed the evidence of positive and statistically significant long run effect of institutional quality on human development. In addition, financial development was found to promote human development whereas higher military expenditure negatively affected it in the long run. The results suggest that institutional quality promotes long run human development. Policymakers should nurture and develop institutions that have good quality such as deterring corruption, improving quality regulation and the application of the rule of law.
{"title":"The Influence of Institutional Quality on Human Development: Evidence from Developing Countries","authors":"Kabiru Kamalu, Z. Abidin","doi":"10.17576/jem-2022-5601-07","DOIUrl":"https://doi.org/10.17576/jem-2022-5601-07","url":null,"abstract":"The paper evaluates the influence of institutional quality on human development in 14 developing countries using data over 1991-2019. We employed the Dynamic Common Correlated Effect method that accounts for heterogeneity and cross-sectional dependency associated with panel data, due to unobserved common factors. The findings revealed the evidence of positive and statistically significant long run effect of institutional quality on human development. In addition, financial development was found to promote human development whereas higher military expenditure negatively affected it in the long run. The results suggest that institutional quality promotes long run human development. Policymakers should nurture and develop institutions that have good quality such as deterring corruption, improving quality regulation and the application of the rule of law.","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79581049","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.17576/jem-2021-5502-6
C. Anwar, Sultan ageng Tirtayasa
The study analyzes the response to financial asset prices and economic activity concerning central bank independence (CBI) shocks in selected developing countries. Financial asset prices were divided into the exchange rate, bond yield, and stock price, while the analysis was contingent on a panel Vector Autoregressive estimation. Furthermore, this study identifies heterogeneity across the countries in its sample through poolability tests. This is achieved through a mean-group estimation to the panel Vector Autoregressive by averaging the PVAR coefficients and impulse response function for all individual countries. Additionally, the sample countries are divided into two sub-groups. The results showed that central bank independence reduces bond yield and increases stock price in the first two quarters. However, it takes a year to cause an appreciation in the exchange rate. Moreover, financial asset prices have an essential role in monetary policy transmission to the extent that a change in CBI affects the exchange rate, bond yield, stock price, thereby influencing private consumption and investment.
{"title":"Heterogeneity Effect of Central Bank Independence on Asset Prices: Evidence from Selected Developing Countries","authors":"C. Anwar, Sultan ageng Tirtayasa","doi":"10.17576/jem-2021-5502-6","DOIUrl":"https://doi.org/10.17576/jem-2021-5502-6","url":null,"abstract":"The study analyzes the response to financial asset prices and economic activity concerning central bank independence (CBI) shocks in selected developing countries. Financial asset prices were divided into the exchange rate, bond yield, and stock price, while the analysis was contingent on a panel Vector Autoregressive estimation. Furthermore, this study identifies heterogeneity across the countries in its sample through poolability tests. This is achieved through a mean-group estimation to the panel Vector Autoregressive by averaging the PVAR coefficients and impulse response function for all individual countries. Additionally, the sample countries are divided into two sub-groups. The results showed that central bank independence reduces bond yield and increases stock price in the first two quarters. However, it takes a year to cause an appreciation in the exchange rate. Moreover, financial asset prices have an essential role in monetary policy transmission to the extent that a change in CBI affects the exchange rate, bond yield, stock price, thereby influencing private consumption and investment.","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79359749","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.17576/jem-2021-5503-10
{"title":"Kesan Persepsi Risiko dan Motivasi Melancong Terhadap Gelagat Pelancong Tempatan Semasa Pandemik COVID-19","authors":"","doi":"10.17576/jem-2021-5503-10","DOIUrl":"https://doi.org/10.17576/jem-2021-5503-10","url":null,"abstract":"","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86177550","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.17576/jem-2021-5502-5
{"title":"Does Oil Consumption Respond Asymmetrically to Oil Price, Exchange Rate and Income Differentials?","authors":"","doi":"10.17576/jem-2021-5502-5","DOIUrl":"https://doi.org/10.17576/jem-2021-5502-5","url":null,"abstract":"","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90148770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.17576/jem-2021-5502-9
{"title":"The Determinants of Carbon Dioxide Emissions in Malaysia and Singapore","authors":"","doi":"10.17576/jem-2021-5502-9","DOIUrl":"https://doi.org/10.17576/jem-2021-5502-9","url":null,"abstract":"","PeriodicalId":35929,"journal":{"name":"Jurnal Ekonomi Malaysia","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75439677","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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