Papers by Shaista Wasiuzzaman
Malaysia is one of the countries that have implemented the concept of Islamic finance in its bank... more Malaysia is one of the countries that have implemented the concept of Islamic finance in its banking industry. The increasing value of the industry has made Malaysia one of the most significant hubs in dealing with Islamic finance. This paper examines the impact of bank characteristic as well as macroeconomic determinants on the profitability of Islamic banks in Malaysia. Ordinary Least Squares (OLS) method was used to analyze the data collected from 16 Islamic banks/windows in order to understand the determinants of Islamic banking profitability in Malaysia. Bank-specific determinants like, capitalization, asset quality, liquidity and operational efficiency were regressed against profitability. In addition, macroeconomic variables like gross domestic product and inflation were also included in the analysis. The results of this study shows that capital and asset quality have an inverse relationship with bank profitability while liquidity and operational efficiency have a positive influence. Finally, the macroeconomic variables show that both inflation and growth domestic product have positively influenced the bank profitability.
International Journal of Managerial Finance, 2015
ABSTRACT Purpose This study examines the relationship between working capital efficiency and firm... more ABSTRACT Purpose This study examines the relationship between working capital efficiency and firm value and the influence of financing constraints on this relationship. Design/methodology/approach Data from 192 firms spanning a period of 10 years (1999 - 2008) are used for this purpose and analyzed using the OLS regression technique. Findings The study finds that improvements in working capital efficiency through reduction in working capital investment results in higher firm value. However, this relationship is influenced by the financing constraints faced by a firm. For financially constrained firms, working capital efficiency significantly increases firm value but it is found to be insignificant for unconstrained firms. Originality/value To the author's knowledge, this is the first study on the value of working capital in Malaysia or in any emerging market. Most studies on working capital valuation concentrate on developed countries and that too are only a handful. Hence this study contributes to the scarce literature on the valuation of working capital. This study also uses the model by Fama and French (1998) to evaluate the relationship between working capital and firm value, which has hardly been used in studies on working capital valuation. Link: http://www.emeraldinsight.com/doi/abs/10.1108/IJMF-01-2013-0016
Journal of Asia Business Studies, 2014
ABSTRACT Purpose – The purpose of this paper is to understand the motives behind the levels of ca... more ABSTRACT Purpose – The purpose of this paper is to understand the motives behind the levels of cash holdings and the theory that may be able to explain why these firms hold so much cash. Design/methodology/approach – Annual financial data and stock prices of 192 firms from six different sectors on the Bursa Malaysia are collected for the period 2000-2007. Analysis using the non-parametric Kruskal–Wallis test is carried out to analyze industrial and time differences in cash holdings. The ordinary least square (OLS) regression technique is used to understand the relationships between various attributes with the level of cash holdings. Due to issues of endogeneity, the generalized method of moments method is also applied. Findings – Significant differences are found to exist in the level of cash holdings between firms and across time. It is found that firms adjust to a target level of cash holdings, although this is done relatively slowly. Also, significance of firm characteristics and their relationships with cash holdings indicate that other than the pecking order theory, the trade-off theory and the agency theory can help explain the level of cash holdings of firms in Malaysia. Originality/value – Most studies on cash holdings have been carried out in developed countries. Malaysia is an advanced emerging market with significant state control and firm structure being largely family-oriented. Hence, a study on a different market with different types of firm structures will contribute significantly to the existing literature on corporate cash holdings.
International Journal of Managerial Finance, 2016
Corporate Governance: The international journal of business in society, 2016
Afro-Asian J. of Finance and Accounting, 2016
Review of Accounting and Finance, 2015
Global Business Review, 2015
Past efforts revealed that not only intrinsic firm characteristics influence debt levels but exte... more Past efforts revealed that not only intrinsic firm characteristics influence debt levels but external factors including industry attributes also impress upon firms' financial policies. As one of the pioneer members of the Association of South East Asian Nations (ASEAN) with high growth opportunities, Malaysia is the focus of present study. Accordingly, a panel dataset composed of 177 companies and 1,062 firm-year observations from the Main Market of the Bursa Malaysia is constructed within 2005-2010. Using Ordinary Least Squares (OLS), the findings present the dominant impact of growth opportunities, profitability, size, ownership, dividend and industry leverage on the companies' capital structure. Firm's asset liquidity and board size show 5% significance level while risk, tangibility, Non-Debt Tax Shields (NDTS), firm's age, tax, industry liquidity and industry concentration are found to have insignificant impact on debt levels. Findings also support dominant expla...
Abstract—Stock market volatility is important in determining the cost of capital and to assess in... more Abstract—Stock market volatility is important in determining the cost of capital and to assess investment and leverage decisions since volatility is synonymous with risk. Risk-averse investors could be affected negatively due to substantial changes in volatility of the financial markets. We focus on the global crisis of 2007/2008 and its impact on the Malaysian financial market. We use GARCH models to model the volatility in order to determine the effect of the crisis on the KLCI. In order to be able to model the volatility, we first test the efficiency of the market using ARIMA models. We found that because of the financial crisis there was an increase in the impact of news about volatility from the previous periods but only a slight drop in the persistency of the conditional variance.
Malaysia is one of the countries that have implemented the concept of Islamic finance in its bank... more Malaysia is one of the countries that have implemented the concept of Islamic finance in its banking industry. The increasing value of the industry has made Malaysia one of the most significant hubs in dealing with Islamic finance. This paper examines the impact of bank characteristic as well as macroeconomic determinants on the profitability of Islamic banks in Malaysia. Ordinary Least Squares (OLS) method was used to analyze the data collected from 16 Islamic banks/windows in order to understand the determinants of Islamic banking profitability in Malaysia. Bank-specific determinants like, capitalization, asset quality, liquidity and operational efficiency were regressed against profitability. In addition, macroeconomic variables like gross domestic product and inflation were also included in the analysis. The results of this study shows that capital and asset quality have an inverse relationship with bank profitability while liquidity and operational efficiency have a positive in...
This paper empirically studies the applicability of the Fama and French three-factor model of sto... more This paper empirically studies the applicability of the Fama and French three-factor model of stock returns for the Malaysian manufacturing industry, which consists of 325 companies listed on the Main Board of the Bursa Malaysia from January 2006 to December 2009. These sample stocks are split into six portfolios sorted on size (SMB) and book-to-market value ratio (HML). We find that the market factor, in all the portfolios, plays a key role in explaining variations in stock returns. The results further support the existence of the value effect in the Bursa Malaysia and its ability to capture variations in the stock returns. But the results for the size effect is somewhat mixed and do not clearly support the existence of the size effect. On the basis of the adjusted R-squared, we confirm that the three-factor model captures the common variation in the stock returns better than the CAPM, the average adjusted R- squared being 62% for the former model and 32% for the latter.
After the recent financial crisis in the year 2008, banks across the world have tightened up lend... more After the recent financial crisis in the year 2008, banks across the world have tightened up lending due to deterioration in countries’ rating sparking global worries of the implication of the crisis on economic growth. Asia is particularly reputed for its strong economic growth and the existence of Islamic banking communities. However, very few studies look into the implication of the global crisis on the risks and performance of banks. Due to this, this study examines i) The difference in the level of risks and performance between Islamic banks and conventional banks and ii) The effect of financial crisis 2008 on banks' risks and performance in Malaysia. The sample of the study consists of 19 banks in Malaysia for the period of 2006-2010. Of these variables, there is evidence of significant differences in the value of LLP (measure of credit risk), TAONE (measure of operational risk), LAOTA and LAOTD (measures of liquidity risks), TIOTA (measure of interest rate risk) and NPM a...
The International Journal of Applied Economics and Finance, 2011
International Journal of Trade, Economics and Finance, 2010
... Conference Paper, 2006. [14] P. Padhi, Stock Market Volatility in India: A Case of SelectScr... more ... Conference Paper, 2006. [14] P. Padhi, Stock Market Volatility in India: A Case of SelectScripts, Unpublshed, 2006. [15] PK Mishra, Global Financial Crisis and Stock ReturnVolatility in India, 2009, unpublished. [16] LH Erdington ...
SSRN Electronic Journal, 2000
This paper examines the relationship between earnings management (discretionary accruals), loan l... more This paper examines the relationship between earnings management (discretionary accruals), loan loss provision, risk and dividend per share. A balanced panel study of 10 banks over the period of 2000-2009 was used to observe the effect of loan loss provision (LLP), risks and dividend per share (DPS) as the potential cause that thrive earnings management. The model is tested using both panel random effects and feasible generalized least square. The results revealed that earnings management is significantly affected by the level of loan loss provisions, operational risks and systematic risks.
Procedia - Social and Behavioral Sciences, 2014
ABSTRACT This study measures the influence of six university qualities, namely academic quality, ... more ABSTRACT This study measures the influence of six university qualities, namely academic quality, academic staff quality, management quality, industrial link quality and facilities’ quality on emotional attachment. A sample of 489 undergraduate students of a private higher acadecmic institution was collected. Using structural equation modeling, it is found that management quality, academic program quality, facilities quality and industrial link quality form significant relationship with emotional attachment. The results provide important findings to researchers for future research directions and management of higher education institutions (HEIs).
SSRN Electronic Journal, 2000
Stock market volatility is important in determining the cost of capital and to assess investment ... more Stock market volatility is important in determining the cost of capital and to assess investment and leverage decisions since volatility is synonymous with risk. Risk-averse investors could be affected negatively due to substantial changes in volatility of the financial markets. We focus on the global crisis of 2007/2008 and its impact on the Malaysian financial market. We use GARCH models to model the volatility in order to determine the effect of the crisis on the KLCI. In order to be able to model the volatility, we first test the efficiency of the market using ARIMA models. We found that because of the financial crisis there was an increase in the impact of news about volatility from the previous periods but only a slight drop in the persistency of the conditional variance.
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Papers by Shaista Wasiuzzaman