The Influence of Debt Financing on Firms’ Performance: Empirical Evidence from Malaysia

This study investigated the relationship between the listed firms’ debt level and performance in Bursa Malaysia during a five-year period. Based on the results of the Hausman test and Breusch-Pagan LM test, the fixed-effect model is the most appropriate model that used to analyze the panel data of 50 Malaysian listed companies within the property sector from the year 2015 to 2019. The results indicated that the short-term debt (STD) and long-term debt (LTD) have positive and insignificant effects on return on asset (ROA), which means that the increase in the short-term debt and long-term debt will lead to an increase in the return on assets. Besides that, account payables (AP) has a negative and insignificant effect on the profitability of property sector companies. According to the outcome of the Granger Causality test, the return on assets does not affect by the account payables, short-term debt, long-term debt and firm size. There is only one unidirectional causality relationship that proves that short-term debt is affected by long-term debt. Additionally, this study focuses on enhancing the existing empirical knowledge of debt financing's influence on the profitability of the listed firms in the property sector.

Capital Structure and Firm Performance: Evidence from Malaysian Public Listed Plantation Companies

This paper examines the relationship between capital structure and performance of firms. The study is confined to plantation sector companies in Malaysia and is based on a sample of 39 firms which listed in Bursa Malaysia for the period from 2009 to 2019. This study uses two performance measures which are ROA and ROE as the dependent variable. Besides, the capital structure measures are the short-term debt, long-term debt, total debt and firm growth, which as the independent variables. Size will be the control variable in this study. Moreover, a fixed-effect panel regression analysis has been used to analyse the impact of capital structure on firm performance. The results indicate that firm performance, which is in term of ROA, have an insignificant relationship with short-term debt (STD) and long-term debt (LTD). For the total debt (TD) and growth, there is a significant relationship with ROA. However, for the performance measured by ROE, it has an insignificant relationship with short-term debt (STD), long-term debt (LTD) and total debt (TD). Furthermore, there is a significant relationship between the growth and the performance firms from plantation sector in Malaysia.

The Effect of Working Capital Management on Profitability: Evidence from Malaysian Construction Firms

Working capital management is an essential part of a sound business. The main objective of this research is to investigate the effect of working capital management on profitability. The regression analysis was carried out on a panel sample of 30 construction firms listed on Bursa Malaysia over a five-year period from 2015 to 2019. The findings suggest that there is a significant positive relationship between Days Inventory Outstanding (DIO) and Gross Operating Profit (GOP) as well as a significant negative relationship between Days Payables Outstanding (DPO) and GOP. Thus, firms can maximise their profitability by maintaining higher inventory level and paying off creditors in a shorter time frame.

Financial Distress and Firm Performance: Evidence from COVID-19.

This study is dedicated to discovering the impact of COVID-19 on Malaysia’s plantation industry firms. This paper uses quarterly data from annual report of 39 listed firms from Malaysia from 2018 to 2020. The variables to measure financial distress are debt ratio and debt-to-equity ratio while the measurement for firm performance is return on assets. The findings shows that there is a significant negative relationship between debt-to-equity ratio on firm performance. This indicates that the increase in debt-to-equity ratio results in a significant decrease in return on total assets. On the other hand, positive correlation exists between debt ratio and firm performance. This means that an increase in debt ratio results in an increase in the return value of total assets.

Royal Family Members and Financial Reporting Timeliness: Evidence from UAE

This study aims to examine the association between Royal family members on the board of directors and financial reporting quality in the United Arab Emirates (UAE). UAE has two markets, namely Abu Dhabi Exchange Security (ADX) and Dubai Financial Market (DFM). The data of the current study were collected from these two markets listed companies for the periods of 2011 to 2018 which resulted in 437 observations. The results of this study showed that the existence of royal family members on the board of the UAE listed companies is significantly associated with financial reporting timeliness. This study provides evidence on the role played by the elite groups (Royal Family members) in UAE in enhancing the role of the board of directors. The findings also reported that board independence, audit committee size, audit committee expert, and firm profitability are significantly associated with financial reporting timeliness. The findings of this study contribute to the existing theory and empirical evidence of how the existence of Royal family members on the board of directors adds values to the company and improves its financial reporting quality.

The Impact Of Corporate Governance on The Financial Performance in Malaysia

The aim of this study is to investigate the relationship between corporate governance and firm financial performance in Malaysia. This study is mainly focusing on four sections of corporate governance which are board independent, board size, the frequency of audit committee meeting and firm size. The population of this study is Top 30 firms in Malaysia that are public listed in Bursa Malaysia while for the period, this study focusses on year 2016 to 2019 which is 4 years. This study uses Return on Assets (ROA) to measure the firm effectiveness and efficiency. As for statistical analysis, this study uses E-View to run all the test such as Breusch-Godfrey Serial Correlation LM Test, Hausman Test, Ordinary Least Squared (OLS) method, Autocorrelation, Multicollinearity and Normality Test. According to the results of the analysis, board independent has positive insignificant relationship with firm performances while board size and firm performances have negative and insignificant relationship. As for the frequency of audit committee meeting and firm size, the results display that both variables have negatively significant relationship with the performances of the firm. Apart from that this study use two theory which are Prospect Theory and Agency Theory.

Comparative Inventory Control Analysis With Economic Order Quantity (Eoq) And Just In Time Method To Minimize Inventory Costs At UD.Melati Jaya

The research discusses how To Compare Inventory Control Analysis With Economic Order Quantity (EOQ) Method and Just In Time (JIT) Method To Minimize Inventory Costs At UD. Melati Jaya. This study discusses a comparative analysis of the Economic Order Quantity method and the Just In Time method to minimize inventory costs at UD. Jasmine jaya. The data analysis method used is descriptive qualitative method with comparative research that compares the Econimic Order Quantity (EOQ) method with the Just In Time (JIT) method to the cost efficiency at UD. Melati Jaya. The analysis results from the comparative calculation of inventory control show that the Just In Time Inventory Control method is more appropriate to be applied to Ud. Melati Jaya because the total cost of the inventory is smaller than the total cost of the inventory when using the Economic Order Quantity (EOQ) method.

The Effect of Profit Sharing Financing and Receivables towards Total Assets in Islamic Banking: Case Study in BNI Syariah

The objective of my research is to observe at the relationship between receivables, profit-sharing financing to total assets at BNI Syariah Bank from 2016-2020. Total assets in BNI Syariah frequently endure fluctuations in total assets each year, whether receivables and profit-sharing financing have a significant effect on variable Y (total assets). The method that researchers run is a quantitative method using the help of SPPS software, while the variables that influence are the dependent variable receivables and profit-sharing financing. The funding channelled by BNI Syariah is essentially the same as other Islamic banks in Indonesia. Because it still uses an agreement that has long practised in the Islamic banking system, such as the Murabaha contract for the provision of receivables, Mudharabah and Musyarakah contracts for profit sharing between customers and banks. The relationship between Receivables and Revenue Sharing Financing has a positive correlation between variables. This research can also provide some connection between Murabahah and Musharaka which are one of the main product sources of BNI Syariah bank. The originality of the research that the researcher makes is his own, it is not copied and that the researcher's research idea is new and can add new knowledge.

Determinants of Sukuk Issuers’ Financial Stability: Evidence from Malaysia

Financial stability and Sukuk expanded swiftly into the financial industry after the 2007-2008 global financial turmoil. Malaysia's Sukuk market is arguably the most prominent in Islamic finance globally, and its inherent nature gives it a better security on the premise of guaranteed firms’ financial stability and returns to investors. This study aims to explore the extent of the Malaysian firms’ financial stability are being influenced by the characteristics of Sukuk and also the firms’ characteristics. Sixty-one listed companies that have issued Sukuk from 1997 to 2017 have been selected for this study. The nave distance to default (DD) developed by Bharath and Shumway was used as a measure of the firms’ financial stability. Ordinary Least Squares (OLS) was employed in this study, and the results confirmed that Sukuk could promote the firms’ financial stability. The variables related to the characteristics of Sukuk that were found to influence financial stability were the intensity of Sukuk and the proportion of Sukuk financing. The firm size, valuation, solvency, and profitability were the firms’ characteristics that have also affected the firms’ financial stability significantly. All these provide evidences that Malaysia should play more active role in promoting the development of Sukuk market, and at the same time should be aware that financial stability is a systematic element which involved many complex factors.

Factors Influencing the Customer Switching Behaviour in Investment Banking

This study examines the factors that influence the customer switching behaviour especially in banks. The data was collected through questionnaires distributions to the respondents who were drawn from the customers who have investment account between Tabung Haji and Amanah Saham Nasional Berhad (ASNB) account banks in Malaysia. In order to test the hypotheses, the multiple regression analysis was applied in this study, as predicted from the prospect theory. It was discovered that the reputation, service quality, distance, switching cost, price, involuntary switching, advertising as well as religious belief were not significant driver to the switching behaviour among the bank customers in Malaysia. Based on the findings of this study, it was recommended that bank manager should focus on service quality and also give undivided attention to the price. Therefore, the interest rate charged or fees ought to be followed up while adequate, timely information need to be given to the customers on reasons for change.