In this study, the author used the GARCH-M (1,1) model to
analyse the time-varying volatility of the Malaysian stock index futures for
the period January 1996 to September 2000. The empirical results show high
persistency of shocks to stock returns volatility. Subsequently, the
conditional variance is decomposed into permanent and transitory components, of
which shocks persist in the permanent component. Informational shocks are
asymmetrical and leverage does exist. Stock returns volatility is extremely
sensitive to the market price levels. Apparently, stock volatility does not
influence market stock returns. The empirical findings show that the effect of
the selective capital control regime on volatility remains mixed.
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Commercial Banks and Entrepreneurship Development: The Malaysian and Indian
Perspectives
by Dr Rajesh Mohnot and Shashi Kumar
In The Accumulation of Capital, Joan Robinson, a renowned
Cambridge economist, talks about the "Golden Age" principle. She says that
society will step into the Golden Age when the total output and the stock of
capital valued in terms of commodities, grow together at a constant rate
compounded of the rate of the labour force and the rate of increase of output
per head. This Golden Age may come true through the rapid industrial
development. It has been proven that availability of entrepreneurial talent is
the key variable in the economic growth of a country. In a study undertaken by
the authors, the findings suggest bankers in Malaysia and India are constantly
promoting entrepreneurial activities. The banks seem to be committed towards
the service of socio-economic objectives of their respective nations.
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Islamic
Banking: Theory, Practice and Challenges
by Assoc Prof Dr Mohd Daud Bakar
Islamic banking, in its present form, is a recent phenomenon not only in
Malaysia but also in other parts of the world. The idea of Islamic banking
emerged in Pakistan in the 1950s. Subsequently, an Egyptian bank, Mit al-Ghamr,
and the Lembaga Urusan Tabung Haji of Malaysia took it up in 1963 and 1969
respectively. The first Islamic bank that was institutionalised as a modern and
full-fledged bank was the Dubai Islamic Bank in 1975. Islamic financial
institutions around the globe tend to adopt almost similar functions to that of
conventional banking, that is, acting as intermediaries between depositors and
users of fund.
In this paper, the author discusses the underlying differences
and distinctions between Islamic and conventional banking systems which,
although appearing simple and straightforward, is the basis for all issues that
lawyers, regulators, accountants, auditors, Syari'ah scholars and bankers have
raised.
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Business Process Re-engineering: A Comparison with Other Management Techniques
by Khong Kok Wei and Prof Stanley Richardson
This paper is an interim report on the second phase of an
ongoing research project by the authors. This paper compares business process
re-engineering (BPR) with other management techniques practised in Malaysia,
and also compares the two sets of data collected in the first phase conducted
in August 1999 and the second phase in April 2000.
The Duties of Nominee Directors Appointed Pursuant to Section 176 (10A)
Companies Act 1965
by Mohammad Rizal Salim
This paper takes a look at the current law in Malaysia relating
to the duties and functions of nominee directors and concludes that all
directors, including nominee directors, must act in the best interests of the
company. This places nominee directors appointed pursuant to sub-section (10A)
Companies Act in a conflict situation. The author proposes that any doubt
relating to the functions and duties of the nominee director appointed pursuant
to the sub-section be clarified by legislation. The author also suggests that
interested parties should take sufficient care to ensure that the court, when
appointing the nominee director, specifies his or her functions, rights and
duties.
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