All Research

Sallahuddin Hassan ·International Journal of Energy Economics and Policy ·2018 ·JEL: C53; O16; Q41

This study is aimed at exploring the impact of energy consumption, private investment, financial development and economic growth on carbon dioxide (CO2 ) emissions in Malaysia employing the autoregressive distributed lags model for the period 1976-2013. The result reveals the presence of long run association connecting the variables and established that private investment and energy consumption impact positively on CO2 emissions in Malaysia. For that reason, the study recommends the implementation of clean technology by private investors is essential in managing CO2 emissions in Malaysia.

H. Vijith, L. W. Seling · D. Dodge-Wan ·Environment, Development and Sustainability ·2018

Soil loss has been quantified and land area categorized for soil erosion vulnerability in a partially forested subwatershed of the Baram River basin (Sarawak, Malaysia) using Revised Universal Soil Loss Equation, which considers climatic and terrain variables. The quantification of soil loss was achieved by integrating the parameters related to rainfall (R), soils (K), terrain (LS) and land use practices (C). The resultant maps of soil erosion show soil losses ranging from 0 to 1190 t ha−1 year−1 with a mean of 28 t ha−1 year−1 in the 1029 km2 Sungai Patah subwatershed study area. The subwatershed was mapped using ArcGIS into five classes of soil erosion risk vulnerability. Among the five classes identified, very high and critically vulnerable zones show linear distribution in some areas which together constitute 13% of the total study area. High and medium erosion vulnerable zones cover 30 and 19%, respectively. Low erosion risk zones cover 36% of the total area. Mean soil loss assessed for each LULC (land use/land cover) class indicates that barren land with high slopes contributes comparatively high rates of soil loss (343 t ha−1 year−1). Field surveys in the study region have enabled identification of erosion hot spots, such as logging areas, shifting cultivation areas and road construction, which intensely modify the terrain, and explain the linearity of critical and severe erosion risk features. The output of the present study will help to frame appropriate management strategies to minimize erosion through implementation of alternative methods in logging activities and terrain management programs.

Ali Saleh Alarussi · Sami Mohammed Alhaderi ·Managerial Auditing Journal ·2018

Purpose The purpose of this paper is to examine the factors affecting profitability in Malaysian-listed companies. It has been argued that profitability is the main pillar for any company to survive in the long run. Although profitability is the primary goal of all business ventures, scant attention has been paid to the factors that affect profitability in developing countries. This study investigates the factors affecting profitability in Malaysian-listed companies. Design/methodology/approach This research is based on five independent variables that were empirically examined for their relationship with profitability. These variables are: firm size (as measured by total sales), working capital (WC), company efficiency (assets turnover ratio), liquidity (current ratio) and leverage (debt equity ratio and leverage ratio). Data of 120 companies listed on Bursa Malaysia covering the period from 2012 to 2014 were extracted from companies’ annual reports. Pooled ordinary least squares regression and fixed-effects were used to analyze the data. Findings The findings show a strong positive relationship between firm size (total sales), WC, company efficiency (assets turnover ratio) and profitability. The results also show a negative relationship between both debt equity ratio and leverage ratio and profitability. Liquidity (current ratio) has no significant relationship with profitability. Research limitations/implications Due to the time limitation, the data includes only 120 companies listed in bursa Malaysia and covers the period from 2012 to 2014. Practical implications These results benefit internal users (such as mangers, shareholders and employees). They can realize the determinants of enhancing the profitability of their company after the depreciation of the Malaysian currency and therefore concentrate more on the factors that enhance their companies’ profitability. On the other side, other external users (such as investors, creditors, new established companies, tax authority) also may get advantages of these results. It is clear that those users concern about the profitability of companies and the determinants of their profitability after the currency’s depreciation. Originality/value This study differs than previous studies in many ways: first, it focuses on non-financial listed companies in Malaysia. Previous studies have concentrated on companies in the financial sector, such as banking and financial institutions or on industrial organizations. Second, this study analyzes the data in companies’ annual reports for a three-year period from 2012 to 2014. During this period, the economy in Malaysia was fluctuating due to currency depreciation. Third, the study used both return on equity and earnings per share as indicators of profitability. Fourth, the results of the study provide empirical evidence that large size firms with efficiently managed assets can improve operating income and ultimately enhance profitability. Last but not least, this study applies the resource-based theory and the trade-off theory.

Habib Ahmed · Ili Rahilah Ibrahim ·Journal of Consumer Policy ·2018

This paper examines the status of the legal and regulatory framework for consumer protection in Malaysia, an emerging economy. Using leximetrics and notions of incomplete law, the paper explores the financial consumer protection regime in the country by examining two aspects of the legal framework: the legal infrastructure and typology of laws. The Malaysian legal framework for financial consumer protection is assessed in light of the good practices identified in international guidelines issued on the themes by OECD and the World Bank. The results highlight the complementary nature and different roles that laws, regulations, and supporting institutions play in achieving a comprehensive financial consumer protection framework in the country.

Caglar Ozden · Mauro Testaverde · Mathis Wagner ·The World Bank Economic Review ·2018 ·JEL: F22; K42

The perception that immigration fuels crime is an important source of anti-immigrant sentiment. Using Malaysian data for 2003-10, this paper provides estimates of the overall impact of economic immigration on crime, and evidence on different socio-economic mechanisms underpinning this relationship. The IV estimates suggest that immigration decreases crime rates, with an elasticity of around −0.97 for property and -1.8 violent crimes. Three-quarters of the negative causal relationship between immigration and property crime rates can be explained by the impact of immigration on the underlying economic environment faced by natives. The reduction in violent crime rates is less readily explained by these factors.

Saeed Solaymani ·Environment, Development and Sustainability ·2018

This study attempts to analyze the short- and long-run impacts of the probable change in rainfall and temperature simultaneously on food availability and access to food issues, as the two dimensions of food security, in Malaysia. It uses an integrated method comprising of a stochastic method and a computable general equilibrium model using the latest (2010) input–output table published in 2015. The stochastic method, which relates to the Monte Carlo simulation, provides the probable changes in rainfall and temperature patterns and their probability of occurrence based on historical data of rainfall and temperature and crop productivity. It was found that, simultaneous variation of rainfall and temperature, in both the short- and long-run, contracts the economic performance of Malaysia. Findings also show the negative impact of rainfall–temperature variability, in both time periods, on food availability and access to food due to a reduction in the supply of agricultural products, a commodity inflation pressure and a reduction in household income. Moreover, results suggest that the climate variability shocks lead to a reduction in the consumption and welfare of all household groups, particularly in rural areas.

Sakiru Adebola Solarin · Shawkat Hammoudeh · Muhammad Shahbaz ·Journal of International Financial Markets, Institutions and Money ·2018 ·JEL: C58; E42; E43; G01; G21

This paper contributes to the existing empirical literature on savings and Islamic banking systems by comprehensively examining the determinants of Islamic banking deposits in Malaysia. Initially, we examine the factors affecting the deposits in Islamic banking by types, which include investment deposits, demand deposits, savings deposits, ringgit Tawarruq deposits, dollar Tawarruq deposits and negotiable instrument deposits. Additionally, we investigate the determinants of deposits in Islamic banking by holders including household deposits, business deposits, financial institution deposits, federal government deposits, state government deposits and statutory agency deposits. We also examine the factors affecting the total deposits in the Islamic banking system. After confirming that the variables are stationary in the first difference through the use of the residual augmented least squares (RALS) procedure of Meng et al. (2014), we use the break-augmented cointegration methods of Johansen et al. (2000) and Giles and Godwin (2012) to check the cointegrating relationships and generate the long run coefficients of the variables. The results show that industrial production index, real interest rates on fixed and savings deposits have positive impacts on several components of Islamic banking deposits and the total deposits of Islamic banks, while real interest rates on deposits in commercial banks have a negative impact. However, the roles of both the Shariah index and the real exchange rate are mixed.

Chee-Hong Law ·Applied Economics Letters ·2018 ·JEL: F21; F31; F40

Some observations have suggested that international reserves contribute to trilemma policy convergence in emerging countries. Nonetheless, this hypothesis needs more solid empirical evidence to determine its validity. This article tests this hypothesis by examining the relationships among the index of policy dispersion, international reserves and trade openness in a threshold model in Malaysia. As a small open economy, Malaysia has accumulated a relatively large amount of international reserves since the mid-1990s. The results indicate that the positive impact of international reserves on reducing policy dispersion or achieving policy convergence is found only if the international reserves are above a threshold. Hence, this conclusion supports the need to hold a relatively high level of international reserves in Malaysia.

Wan Nordin Wan Hussin · Hasan Mohamad Bamahros · Siti Norwahida Shukeri ·Managerial Auditing Journal ·2018

Purpose Motivated by a recent call from DeFond and Zhang (2014) for auditing scholars to use “a richer set of audit firm, auditor office, and individual auditor characteristics to capture competency”, this study aims to extend the related line of research by examining the association between lead engagement partner workload, defined as the number of public listed clients the partner is in charge of, and audit lag. The moderating effects of partner tenure on the partner workload–audit lag relationship have also been examined. Design/methodology/approach The association between auditor workload and financial reporting timeliness on 651 non-financial firms listed on Bursa Malaysia is tested in this study. Data to compute the partner workload are based on 222 lead engagement partners who signed off the audit reports for all 892 public listed firms in 2013. Findings The busy auditors are observed to prolong audit lags, and the effect is more acute for non-Big 4 clients, busy season clients and a short partner tenure. The engagement partners with heavy workload can also mitigate the adverse effects of reduced audit report timeliness when they have a longer partner–client tenure. Research limitations/implications This study may understate the level of engagement partner workload when partners have private firms in their client portfolios. Notwithstanding that, this study reiterates the growing importance of examining accounting and auditing outcomes at the individual partner level. Practical implications The findings that over-burdened engagement partner takes a longer time to complete the audit add to the current debate, where audit regulators and various stakeholders are actively promoting discussions on potential indicators of audit efficiency and quality. Originality/value This study provides new evidence on the association between partner workload and audit reporting lag, which has hitherto been unexplored. This study also extends the research carried out by Gul et al. (2017) and Sharma et al. (2017) by providing additional evidence on the relationship between partner tenure and audit delay.

Zaharah binti Yahya · MarianiAriffin · Sabrina Ho Abdullah ·Resources Policy ·2018

The Malaysian State of Selangor has been blessed with an abundant reserve of granite rocks located in the districts of Kuala Langat, Hulu Selangor, Gombak, and Hulu Langat which supply raw materials to develop physical infrastructures including highway roads, building, airports, and townships particularly in Cyberjaya and Putrajaya and supply raw materials to the buildings of the Klang Valley. An active industry, however, comes with shortcomings related to the atmosphere, hydrosphere, lithosphere and biosphere of the ecosystem. In 2009, there were 314 active quarries in Malaysia of which only 12 practiced the best greening effort. Quarry rehabilitation prevents pollution and leads to a cost-effective measure for sustainable quarrying. At present, there is a need to enhance the existing law and policy to ensure the rehabilitation of quarries. Quarry rehabilitation can strike a balance between the need for development, economic aspect, environment, and social aspects in the long term that produces a sustainable quarrying industry that can benefit the Selangor State Government as well as the Federal Government. Generally, this paper aims to identify factors hindering quarry rehabilitation in Selangor. The specific objective of this research is to identify the present status of quarry rehabilitation implementation and examine what the existing legislative framework provides on quarry rehabilitation. By using a qualitative approach, it focuses on Selangor as a case study. A Doctrinal Approach was used to analyze Primary Legal Documents based on the seven Parameters of Quarry Rehabilitation produced by the World Business Council for Sustainable Development (WBCSD) established in 2011. The seven parameters are a vital tool to ensure legal frameworks and policies related to quarry rehabilitation are effective.

Sabariah Nordin · Afiruddin Tapa · Hamdan Al-Jaifi ·International Journal of Supply Chain Management ·2018

This study intends to identify the long run relationships between oil price, exchange rates, stock market and interest rate in the context of Malaysia. Weekly data from 1 January 2006 until 22 April 2018 were used. Unit root tests of ADF and PP reveal that all variables are non-stationary at level and become integrated and stationary at first differential series, hence ratify that these variables can be used for further long run investigation. An ARDL bound test and Johansen and Juselius cointegration test suggest the existence of actual long-run relationship between oil price, stock price index, exchange rate and interest rate in Malaysia. Results of Granger causality indicates the presence of unidirectional causality between oil prices and Malaysian stock market running from oil prices to the stock price index. Results also suggest that there is a presence of bidirectional causality between interest rate and oil prices which means causality is running from interest rate to oil prices and from oil prices to the interest rate. Lastly, the results also propose that there is an existence of uni-directional causality between exchange rate and oil prices, running from the exchange rate to the oil prices at 10 percent significance level. Even the results of wavelet coherence approach confirm long run relationships between the underlying variables.

Caroline Theoharides ·Journal of Human Resources ·2018 ·JEL: F22; I25; O15

I estimate the effect of international migration on the human capital of children in the migrants’ origin country. Using administrative data containing all migrant departures from the Philippines, I exploit variation across provinces in destination-country demand for migrants. My estimates are at the local labor market level, allowing for spillovers to nonmigrant households. An average year-to-year percent increase in migration causes a 3.5 percent increase in secondary school enrollment. The effects are likely driven by increased income rather than an increased expected wage premium for education.

Nur Shuhada Abdul Basir · Chemah Tamby Chik · Sabaianah Bachok · Noradzhar Baba · Rasidah Hamid · Maria Mohd Salleh ·International Journal of Supply Chain Management ·2018

The halal food industry is vital to the world wide muslim consumers to ensure the food they consumed, use and purchase are hygienic, clean and not harmful to health. Muslim is the largest group in Malaysia with 61.3% from total population. Thus, having halal products are important in Malaysia. However, halal is not just for the muslim, the process of producing halal product may well benefit nonmuslim all around the world. Therefore, the markets for halal product are huge beyond the consumption of Malaysian population. But the capabilities of exporting halal products among small and micro enterprises in Malaysia are still weak. Therefore, this research intends to study the motivational factors that influence or hinders halal certification adoption among small and micro companies. It is designed to investigate the connection between motivational factors towards halal certification adoption, to study if expected competitiveness affects halal certification adoption, and to what extent top management commitment impacts the halal certification adoption. This study could add knowledge and help government in introducing policy to encourage these companies to embark in the halal journey.

Abu bakar Hamid Danlami · Shri-Dewi Applanaidu · Rabiul Islam ·Environment, Development and Sustainability ·2018

There exists a high global concern in different nations on environmental sustainability especially at the focal stage of increased economic growth and development process due to high level of environmental degradation and pollution. The major aim of this study was to empirically examine how to minimise carbon emissions (CO2) in Malaysia which are mainly caused by energy production, fossil fuel consumption, population density and economic growth. The study adopted the method of autoregressive distributed lag bound testing approach to analyse the data for the period 1971–2011. The study found that economic growth in Malaysia has a direct relationship with CO2 emissions in both the short run and the long run. Similarly, there is a positive relationship between fossil fuel consumption and CO2 emissions over the same period. Population density was found to have positive impacts on CO2 emissions. Contrarily, the relationship between the activities of energy production and pollution is negative in the long run. The study recommends that a targeted GDP growth rate should be set with the consideration to avoid more environmental pollution. In addition, the positive impact of fossil fuel consumption on the environmental pollution implies that there is a need to make and implement policies that will encourage the use of public transportation system more than private transportations. That is, the unnecessary use of private vehicles should be discouraged in order to reduce the extent of fossil fuel consumption.

Sitraselvi Chandren · Ayoib Che Ahmad · Santhirasegaran Nadarajan ·International Journal of Supply Chain Management ·2018

The implementation of Goods Service Tax (GST) in business processes requires firm to revise their business policies and practices particularly on price setting and cash flow operation that may possibly influence the operating performance. Thus, the purpose of this study is to investigate the impact of GST on operating performance. This study investigated 265 Malaysian listed firms operating performance (profitability: sales growth –SG, profit after tax-PAT, return on asset (ROA), liquidity: operating cash flows (OCF) and current ratio –CR) from year 2014 (before), 2015 (during) and 2016 (after) GST implementation period using the paired t-test. The SG have shown decreased during the GST implementation period, subsequently improved after the GST implementation period. The CR has exhibited a remarkable improvement during and after GST implementation period. The SG and CR results validate the firms are able to maintain the operating performance even with minimal reduction is witnessed for PAT, ROA and OCF during and after GST implementation. This study contributes to all stakeholders that GST do not necessarily influence the firms negatively, but allows the management of the firm in making effective decision for the operating business processes and supply chain for sustaining the firm value. In sum, this study finds that GST is a business friendly tax system for firms with effective operating performance to support the country economic development.