Pub Date : 2019-08-31DOI: 10.21315/aamjaf2019.15.1.3
C. Law, Chee-Lip Tee, Say Keat Ooi
This paper investigates the relationship between monetary independence and its potential determinants A³ foreign exchange reserves, exchange rate stability, financial integration and inflation. This paper contributes to the literature by testing the threshold effect of the degree of financial integration on the relation between monetary independence and foreign exchange reserves. In particular, a linear model and a threshold model are compared using average cross-sectional data from 55 countries. The linear model shows that foreign exchange reserves increase monetary independence. Nonetheless, the threshold estimation indicates that foreign exchange reserves can maintain monetary independence when the degree of financial integration of a country is above a certain threshold value. Such a finding suggests that the relationship between monetary independence and foreign exchange reserves is subject to the degree of financial integration. Moreover, the evidence supports a weakening effect from financial integration to the phenomenon of A«fear of floatingA.
{"title":"Threshold Effect of Financial Integration on Linkages Between Monetary Independence\u0000 and Foreign Exchange Reserves","authors":"C. Law, Chee-Lip Tee, Say Keat Ooi","doi":"10.21315/aamjaf2019.15.1.3","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.1.3","url":null,"abstract":"This paper investigates the relationship between monetary independence and its potential determinants A³ foreign exchange reserves, exchange rate stability, financial integration and inflation. This paper contributes to the literature by testing the threshold effect of the degree of financial integration on the relation between monetary independence and foreign exchange reserves. In particular, a linear model and a threshold model are compared using average cross-sectional data from 55 countries. The linear model shows that foreign exchange reserves increase monetary independence. Nonetheless, the threshold estimation indicates that foreign exchange reserves can maintain monetary independence when the degree of financial integration of a country is above a certain threshold value. Such a finding suggests that the relationship between monetary independence and foreign exchange reserves is subject to the degree of financial integration. Moreover, the evidence supports a weakening effect from financial integration to the phenomenon of A«fear of floatingA.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2019-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43657825","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 : 2019-08-15DOI: 10.21315/aamjaf2019.15.1.5
Heejeong Shin, Su-in Kim, Sorah Park, Hyejeong Shin
We examine the relationship between industry homogeneity and the magnitude of postearnings announcement drift (hereafter, PEAD). Given that firms with more homogeneous operating cost structure are conducive to spillover of knowledge among investors, we expect that firms in highly homogenous industries have relatively low magnitude of PEAD. Using firms listed on the Korean Stock Exchange, we find that the magnitude of PEAD is negatively related to industry homogeneity, indicating that investors are more efficient for firms in a highly homogenous industry in which information is likely to be referred to peer firms. In addition, we find that the effect of industry homogeneity on the magnitude of PEAD is robust even after controlling to the effect of industry concentration. Our study contributes to the literature on exploring determinants of PEAD by linking information transfer effect in a homogenous industry to investors’ informational efficiency in capital markets.
{"title":"The Effect of Industry Homogeneity on the Magnitude of Post-Earnings Announcement\u0000 Drift: Evidence from Korea","authors":"Heejeong Shin, Su-in Kim, Sorah Park, Hyejeong Shin","doi":"10.21315/aamjaf2019.15.1.5","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.1.5","url":null,"abstract":"We examine the relationship between industry homogeneity and the magnitude of postearnings announcement drift (hereafter, PEAD). Given that firms with more homogeneous operating cost structure are conducive to spillover of knowledge among investors, we expect that firms in highly homogenous industries have relatively low magnitude of PEAD. Using firms listed on the Korean Stock Exchange, we find that the magnitude of PEAD is negatively related to industry homogeneity, indicating that investors are more efficient for firms in a highly homogenous industry in which information is likely to be referred to peer firms. In addition, we find that the effect of industry homogeneity on the magnitude of PEAD is robust even after controlling to the effect of industry concentration. Our study contributes to the literature on exploring determinants of PEAD by linking information transfer effect in a homogenous industry to investors’ informational efficiency in capital markets.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2019-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43656542","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 : 2019-08-15DOI: 10.21315/aamjaf2019.15.1.2
H. Lee, F. Cheng, A. Nassir, N. H. A. Razak
Risk Based Capital framework for Takaful operators (RBCT) is enforced by the Central Bank of Malaysia with the aim to ensure that Takaful operators have adequate capital to provide sound financial service. The objectives of this article is to examine the impacts of RBCT on efficiency, productivity and competitiveness level of Family Takaful Operators (FTO) and the relationship between efficiency and competitiveness in FTO in Malaysia. This study employs three methods namely Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI) and Panzar Rosse (PR) to investigate the impacts of RBC on the efficiency, productivity and competitiveness of FTO in Malaysia. The efficiency results indicate that after RBCT comes into effect, the cost efficiency has achieved higher efficient level. Although the productivity efficiency are improving, the technological systems of FTO are yet to achieve a reasonable level. From competitiveness results, the FTO are less competitive prior the implementation of RBCT, but has become more competitive after the regulation of RBCT framework. Furthermore, the more efficient of a Takaful market, the more competitive the market is. The implication of this study is that regulators need to impose prudent risk based capital regulation because it will improve the efficiency and competitiveness of Islamic insurers.
{"title":"Impacts of Risk Based Capital Regulation in Malaysian Islamic Insurers\u0000 (Takaful)","authors":"H. Lee, F. Cheng, A. Nassir, N. H. A. Razak","doi":"10.21315/aamjaf2019.15.1.2","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.1.2","url":null,"abstract":"Risk Based Capital framework for Takaful operators (RBCT) is enforced by the Central Bank of Malaysia with the aim to ensure that Takaful operators have adequate capital to provide sound financial service. The objectives of this article is to examine the impacts of RBCT on efficiency, productivity and competitiveness level of Family Takaful Operators (FTO) and the relationship between efficiency and competitiveness in FTO in Malaysia. This study employs three methods namely Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI) and Panzar Rosse (PR) to investigate the impacts of RBC on the efficiency, productivity and competitiveness of FTO in Malaysia. The efficiency results indicate that after RBCT comes into effect, the cost efficiency has achieved higher efficient level. Although the productivity efficiency are improving, the technological systems of FTO are yet to achieve a reasonable level. From competitiveness results, the FTO are less competitive prior the implementation of RBCT, but has become more competitive after the regulation of RBCT framework. Furthermore, the more efficient of a Takaful market, the more competitive the market is. The implication of this study is that regulators need to impose prudent risk based capital regulation because it will improve the efficiency and competitiveness of Islamic insurers.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2019-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44349117","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 : 2019-01-01DOI: 10.21315/aamjaf2019.15.2.2
Nishant B. Labhane
The present study examines the catering theory of dividends proposed by M. Baker and J. Wurgler in 2004 for 781 sample firms listed on National Stock Exchange (NSE) in India during 1994–1995 to 2014–2015. The dividend premium, a proxy to measure the time-varying investors’ desire for dividends, is captured in each year during the study period. The dividend premium is negative for most of the years of the study period which is consistent with the previous research studies in the U.S. The results for the relationship between the dividend payment variables and the investors’ demand for dividend indicate that when the dividend premium is high the non-dividend paying firms initiate dividend payment in the following year whereas, when the dividend appear at the stock market dividend discount the dividend-paying firms omit (not continue) paying dividend in the subsequent year. The empirical results suggest that the decision to initiate and continue dividend payment have strong predictive power for the future excess share returns of dividend-paying firms over non-dividend paying firms. Thus, our results support the notion that the managers of Indian firms cater rationally to investors demand for dividends by paying dividends when investors place a premium on dividend-paying firms and vice versa.
{"title":"A Test of the Catering Theory of Dividends: Empirical Evidence from an Emerging Economy India","authors":"Nishant B. Labhane","doi":"10.21315/aamjaf2019.15.2.2","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.2.2","url":null,"abstract":"The present study examines the catering theory of dividends proposed by M. Baker and J. Wurgler in 2004 for 781 sample firms listed on National Stock Exchange (NSE) in India during 1994–1995 to 2014–2015. The dividend premium, a proxy to measure the time-varying investors’ desire for dividends, is captured in each year during the study period. The dividend premium is negative for most of the years of the study period which is consistent with the previous research studies in the U.S. The results for the relationship between the dividend payment variables and the investors’ demand for dividend indicate that when the dividend premium is high the non-dividend paying firms initiate dividend payment in the following year whereas, when the dividend appear at the stock market dividend discount the dividend-paying firms omit (not continue) paying dividend in the subsequent year. The empirical results suggest that the decision to initiate and continue dividend payment have strong predictive power for the future excess share returns of dividend-paying firms over non-dividend paying firms. Thus, our results support the notion that the managers of Indian firms cater rationally to investors demand for dividends by paying dividends when investors place a premium on dividend-paying firms and vice versa.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"15 1","pages":"29-52"},"PeriodicalIF":0.9,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67727508","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 : 2019-01-01DOI: 10.21315/aamjaf2019.15.2.4
W. Wong, S. Sabki, Anggapan Regupathi, Syed Salim
This paper offers new evidence as to how the heterogeneity in small and medium enterprises’ (SMEs’) liability structure affects their growth and profitability. On average, SMEs in our sample incurred a shortage in spontaneous (supplier) financing of 24.9% of total assets. This shortage is financed by bank debt of 21.1% which consists of trade-line facilities (9.6%) and term loans (11.6%). SMEs also finance this shortage in spontaneous financing with non-bank financing sources such as leasing (3.3%) and related party loans (2.9%). Regression results show that SMEs that are efficient in working capital management (shorter cash conversion cycle) tend to perform better. This value creation in efficient working capital management mainly arises from longer payable period enjoyed from the suppliers. SMEs that obtained more loans from related parties tend to exhibit higher performance. Conversely, SMEs that extend more loans to their related parties are associated with lower performance. In terms of growth, SMEs with access to banking facilities tend to enjoy higher growth rate. However, excessive debt in balance sheet is detrimental to SMEs’ growth prospect.
{"title":"Malaysian SMEs’ Liability Structure and its Impact on Profitability and Growth","authors":"W. Wong, S. Sabki, Anggapan Regupathi, Syed Salim","doi":"10.21315/aamjaf2019.15.2.4","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.2.4","url":null,"abstract":"This paper offers new evidence as to how the heterogeneity in small and medium enterprises’ (SMEs’) liability structure affects their growth and profitability. On average, SMEs in our sample incurred a shortage in spontaneous (supplier) financing of 24.9% of total assets. This shortage is financed by bank debt of 21.1% which consists of trade-line facilities (9.6%) and term loans (11.6%). SMEs also finance this shortage in spontaneous financing with non-bank financing sources such as leasing (3.3%) and related party loans (2.9%). Regression results show that SMEs that are efficient in working capital management (shorter cash conversion cycle) tend to perform better. This value creation in efficient working capital management mainly arises from longer payable period enjoyed from the suppliers. SMEs that obtained more loans from related parties tend to exhibit higher performance. Conversely, SMEs that extend more loans to their related parties are associated with lower performance. In terms of growth, SMEs with access to banking facilities tend to enjoy higher growth rate. However, excessive debt in balance sheet is detrimental to SMEs’ growth prospect.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"15 1","pages":"77-94"},"PeriodicalIF":0.9,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67727680","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 : 2019-01-01DOI: 10.21315/aamjaf2019.15.2.3
R. Rahim, Pick-Soon Ling, R. M. Rashid
In light of the liberalisation in Malaysia’s mutual fund industry, this study examines the performance of 180 internationally-focused against 191 locally-focused Malaysian-based funds using augmented Henriksson-Merton market timing model on daily data starting from January 1995 until December 2015. The results show that the funds generally outperform the market, despite the persistently perverse market timing ability. Although geographically disadvantaged, locally-focused funds prove to be superior to the internationally-focused funds both in terms of returns and risks owing to the informational advantage to better select the stocks from their own market. The results also reveal that size effect is imminent regardless of geographical focus, value investing is significant only among locally-focused funds, while momentum is marginally effective.
{"title":"Performance of Local Versus International Focus Malaysian-based Mutual Funds","authors":"R. Rahim, Pick-Soon Ling, R. M. Rashid","doi":"10.21315/aamjaf2019.15.2.3","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.2.3","url":null,"abstract":"In light of the liberalisation in Malaysia’s mutual fund industry, this study examines the performance of 180 internationally-focused against 191 locally-focused Malaysian-based funds using augmented Henriksson-Merton market timing model on daily data starting from January 1995 until December 2015. The results show that the funds generally outperform the market, despite the persistently perverse market timing ability. Although geographically disadvantaged, locally-focused funds prove to be superior to the internationally-focused funds both in terms of returns and risks owing to the informational advantage to better select the stocks from their own market. The results also reveal that size effect is imminent regardless of geographical focus, value investing is significant only among locally-focused funds, while momentum is marginally effective.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"15 1","pages":"53-75"},"PeriodicalIF":0.9,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67727470","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 : 2019-01-01DOI: 10.21315/aamjaf2019.15.2.6
Sanzid Haq, D. Tran, M. Hassan
Over the last 30 years, liquidity creation has become a USD12.3 trillion business and large banks seem to have all but secured their indelible footprint in the banking industry. Moreover, over a 24 years period (1984 through 2008) big banks have managed to turn their 76% dominance to a prodigious 86% footprint, while the medium and small banks lost ground in the wake. So, looking for ways to create liquidity has become an existential crisis for non-large banks also an avenue for larger banks to maintain their leads. In an effort to find an innovative way to create liquidity, banks have turned to tools that lend themselves to be manipulated at discretion without material consequence to the rest of the business. Discretionary loan loss provision (DLLP) has become such a tool. Using a large sample of the U.S. bank holding companies from the first quarter of 2000 through the fourth quarter of 2015, we explore the relationship between discretionary loan loss provision and liquidity creation and find that, perhaps much to the dismay of some banks, earning manipulation through a tool like DLLP has a negative impact on liquidity creation. Moreover, this impact is indiscriminate regardless of whether the banks are facing an economy that is marred by financial crisis or otherwise. Our findings stand the test of various sensitivity tests to demonstrate their robustness and consistent with prior findings in the literature.
{"title":"Discretionary Loan Loss Provision Behaviour and Banks’ Liquidity Creation","authors":"Sanzid Haq, D. Tran, M. Hassan","doi":"10.21315/aamjaf2019.15.2.6","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.2.6","url":null,"abstract":"Over the last 30 years, liquidity creation has become a USD12.3 trillion business and large banks seem to have all but secured their indelible footprint in the banking industry. Moreover, over a 24 years period (1984 through 2008) big banks have managed to turn their 76% dominance to a prodigious 86% footprint, while the medium and small banks lost ground in the wake. So, looking for ways to create liquidity has become an existential crisis for non-large banks also an avenue for larger banks to maintain their leads. In an effort to find an innovative way to create liquidity, banks have turned to tools that lend themselves to be manipulated at discretion without material consequence to the rest of the business. Discretionary loan loss provision (DLLP) has become such a tool. Using a large sample of the U.S. bank holding companies from the first quarter of 2000 through the fourth quarter of 2015, we explore the relationship between discretionary loan loss provision and liquidity creation and find that, perhaps much to the dismay of some banks, earning manipulation through a tool like DLLP has a negative impact on liquidity creation. Moreover, this impact is indiscriminate regardless of whether the banks are facing an economy that is marred by financial crisis or otherwise. Our findings stand the test of various sensitivity tests to demonstrate their robustness and consistent with prior findings in the literature.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"15 1","pages":"119-154"},"PeriodicalIF":0.9,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67727291","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 : 2019-01-01DOI: 10.21315/aamjaf2019.15.2.7
R. Tarazi, M. Z. Hasan
This study examines the effect of the trade weighted index (TWI) return on the volatility of Australian Real Estate Investment Trusts (REITs). This study also contributes to the existing literature by measuring the impact of the macroeconomics and fundamental factors on the real estate market for three major states in Australia including New South Wales, Victoria, and Queensland. Using monthly house and unit prices and covering the period from 2009 to 2016, this research uses both fixed and random effect panel data models and the vector autoregressive (VAR) model. The findings of the study suggest that the movement of the TWI has positive and statistically significant impact on Australian REITs suggesting the real estate investors expect risk premium on exchange rate factor. The results also purport that both house and unit prices in Australia are exposed to the fluctuations of the fundamental risk factors. Rental yield, a return component, has a positive relationship with the real estate market in New South Wales and Queensland. The findings of the study provide significant insight to the investors in their portfolio formation since they have the understanding of the priced risk factors.
{"title":"The Effect of Economic and Fundamental Factors on the Australian Property Performance","authors":"R. Tarazi, M. Z. Hasan","doi":"10.21315/aamjaf2019.15.2.7","DOIUrl":"https://doi.org/10.21315/aamjaf2019.15.2.7","url":null,"abstract":"This study examines the effect of the trade weighted index (TWI) return on the volatility of Australian Real Estate Investment Trusts (REITs). This study also contributes to the existing literature by measuring the impact of the macroeconomics and fundamental factors on the real estate market for three major states in Australia including New South Wales, Victoria, and Queensland. Using monthly house and unit prices and covering the period from 2009 to 2016, this research uses both fixed and random effect panel data models and the vector autoregressive (VAR) model. The findings of the study suggest that the movement of the TWI has positive and statistically significant impact on Australian REITs suggesting the real estate investors expect risk premium on exchange rate factor. The results also purport that both house and unit prices in Australia are exposed to the fluctuations of the fundamental risk factors. Rental yield, a return component, has a positive relationship with the real estate market in New South Wales and Queensland. The findings of the study provide significant insight to the investors in their portfolio formation since they have the understanding of the priced risk factors.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"15 1","pages":"155-184"},"PeriodicalIF":0.9,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67727484","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 : 2018-08-15DOI: 10.21315/AAMJAF2018.14.1.4
K. Khaw, Jing Liao
In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholdersA interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate governance. This is because female directors are found to be more active in monitoring activities, cautious in decision making, less aggressive and risk averse as compared to male directors. We support this argument with evidence from a sample of listed firms in Malaysia. In line with the literature, we show that female directors play a significant monitoring role in reducing corporate risk taking behaviour. Our results are robust to endogeneity concern. Since board gender diversity plays a significant risk monitoring role, we recommend that there should be a continuous call to appoint female directors to the boardrooms among Malaysian listed firms to diversify the A«old boys clubA corporate boardrooms.
{"title":"Board Gender Diversity and Its Risk Monitoring Role: Is it Significant?","authors":"K. Khaw, Jing Liao","doi":"10.21315/AAMJAF2018.14.1.4","DOIUrl":"https://doi.org/10.21315/AAMJAF2018.14.1.4","url":null,"abstract":"In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholdersA interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate governance. This is because female directors are found to be more active in monitoring activities, cautious in decision making, less aggressive and risk averse as compared to male directors. We support this argument with evidence from a sample of listed firms in Malaysia. In line with the literature, we show that female directors play a significant monitoring role in reducing corporate risk taking behaviour. Our results are robust to endogeneity concern. Since board gender diversity plays a significant risk monitoring role, we recommend that there should be a continuous call to appoint female directors to the boardrooms among Malaysian listed firms to diversify the A«old boys clubA corporate boardrooms.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"14 1","pages":"83-106"},"PeriodicalIF":0.9,"publicationDate":"2018-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47257946","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 : 2018-01-01DOI: 10.21315/aamjaf2018.14.2.3
Tuck Cheong Tang
This study explores the role of financial sector on import demand behaviour (the real sector) from general equilibrium perspective, which is based on the portfolio balance approach to capture financial market. Japan’s data support partially this hypothesis given noncointegration finding, while foreign interest rate is significant i.e. reduces Japan’s imports. Growth in foreign income is the most influential factor, and domestic economic growth both make more imports. However, the relative price of domestic goods, and domestic interest rate are insignificant. Japan’s monetary policy (interest rate) is inappropriate in altering the behaviour of imports in Japan, but fiscal policy that influences Japan’s economic growth.
{"title":"Financial Sector and Aggregate Import Demand: A General Equilibrum Perspective with Japan Data","authors":"Tuck Cheong Tang","doi":"10.21315/aamjaf2018.14.2.3","DOIUrl":"https://doi.org/10.21315/aamjaf2018.14.2.3","url":null,"abstract":"This study explores the role of financial sector on import demand behaviour (the real sector) from general equilibrium perspective, which is based on the portfolio balance approach to capture financial market. Japan’s data support partially this hypothesis given noncointegration finding, while foreign interest rate is significant i.e. reduces Japan’s imports. Growth in foreign income is the most influential factor, and domestic economic growth both make more imports. However, the relative price of domestic goods, and domestic interest rate are insignificant. Japan’s monetary policy (interest rate) is inappropriate in altering the behaviour of imports in Japan, but fiscal policy that influences Japan’s economic growth.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":"14 1","pages":"45-64"},"PeriodicalIF":0.9,"publicationDate":"2018-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67727174","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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