|
2005
(Issue No. 128)
Synopsis
Risk-return
Relations of Malaysian Bidding Firms: An Investigation Using 4 Different
Methods
by Saiful Hafizah Jaaman, Dr Zaidi Isa & Afdzal Al-'Adli Husni
Employing four different methods: market model with constrained parameters 
= 0 and  = 1, market model with unconstrained
parameters
and ,
market model with the Fowler-Rorke (1983) correction to control for thin
trading and market model with GARCH specification to control for volatility
clustering, this study extends the works of Fauzias (1993) and Ariff et al
(1998) in examining the returns of acquiring firms surrounding merger
announcements. Investigating the behaviours of acquiring firms for the
1993-2001 period, this study finds that there are no obvious differences in the
conclusions when using different methods.
Assessing
Capital Investment Projects
by Sabariah Nordin & Dr Nur Adiana Hiau Abdullah
This paper examines the capital budgeting practices of listed companies in
Malaysia. Towards this end, questionnaires were sent to companies listed on the
Main Board of Bursa Malaysia. The results indicate a prevalent use of net
present value (NPV) and the accounting rate of return (ARR) in evaluating major
capital investment projects. Further, sensitivity or scenario analysis was
found to be the most important method used to assess risks of major projects.
However, more than half of the sample companies utilised more than one method
in assessing project risks.
Top
Determinants
of an Optimal Debt-Equity Choice: Reviewing the Changing Paradigms
by Dr Rajesh Mohnot
An optimal debt-equity choice decision has been one of the most debated issues
in modern corporate finance ever since Modigliani and Miller revealed the
relationship between a firm's value and an appropriate debt-equity ratio. This
paper reviews the emerging factors of determinants concerning debt-equity
choice and theoretically evaluates the appropriateness of empirical models to
measure the so-called optimum debt-equity mix. The paper has concluded that
there are some changing paradigms in the determining factors of debt-equity
decisions. Some of the most discussed determining factors include
profitability, growth opportunities, firm's size, asset structure, volatility,
earning power, non-debt tax shield, financial distress, age, signaling and
uniqueness.
Branch Network
Stategy: A Practitioner's Guide to Success
by David Cavell
During the dot.com period, bank branches were predicted to be on the way out.
However, contrary to being a dying delivery channel, branches continue to exert
their pressure in today's multi-channel distribution strategies. This paper
discusses practical approaches to ensuring that branch investment achieves and
sustains the required level of profitability. It looks first at three mission
critical issues at the heart of profitable strategies. It then examines other
important issues that have yet to be adopted by many retail banks.
Top
Competitive
Intelligence for Financial Services Institutions
by Chris West
In today's highly competitive business environment the penalties for ignoring
competitors are as severe as ignoring customers. Competitive intelligence (CI)
is embraced enthusiastically by most business sectors in which competition is
intense and where there are significant financial and operational benefits to
be derived from understanding competitors?activities and the competitive
environment thoroughly. Financial services falls into this category along with
pharmaceuticals, IT, telecommunications and professional services. The need to
develop a competitive strategy to complement a customer strategy is gaining
recognition in financial institutions. This article sets out the reasons why
competitive intelligence has become an important management tool in the
financial services sector and how management can profit from what it has to
offer.
Confirmatory
Factor Analysis: A Study on Banking Institutions in Malaysia
by Dr Khong Kok Wei & Yap Bee Wah
The paper examines the quantitative technique in gauging perceived and
intangible measures, i.e., Structural Equation Modeling (SEM). SEM is used to
estimate the latencies of hypothetical concepts, thus making it a very
important statistical technique in social science studies. SEM consists of two
important models, the measurement model (CFA) and the structural model. This
paper stresses the former. Data collected from a survey conducted on Malaysian
banks was used to illustrate the measurement model.
Top
Malaysia in
Malaysia in the New Economy: Human Capital, Knowledge and Growth
Competitiveness
by Dr Tan Hui Boon, Hooy Chee Wooi & Lim Kian Ping
In the ‘new economy?of today's information age, knowledge is widely recognised
as the driver of productivity and economic growth. Malaysia, among others, has
embarked on an ambitious master plan to exploit knowledge as its long-term
growth generator. The country's effort in cultivating a knowledge society
through education development of human capital is reflected in its knowledge
stock and economic growth. Nevertheless, much effort has to be done in shaping
a competitive human capital that allows Malaysia to turn into a frontier
technology exporting country. Except for that, Malaysia can still be considered
as the best country in Southeast Asia, after Singapore, to make a successful
transition towards a K-economy.
Motivations
and Barriers to Internet Usage for E-commerce among SMEs in Malaysia
by Dr Mohd Gazali Abas
A better usage of ICT is identified as one of the important factors for
enhancing business efficiency and productivity in the economy. However, studies
show that despite various initiatives to promote ICT usage, many small and
medium enterprises (SMEs) in Malaysia still do not use the Internet for
e-commerce. Moving forward, it is necessary to understand the latent factors
that correlate with the usage of Internet for transactions and the factors that
hinder or motivate businesses to adopt e-commerce. In this study, the author
conducted a questionnaire survey on Internet usage for e-commerce activities
among firms in Kuala Lumpur and Selangor (the two most developed areas in
Malaysia), and offers some recommendations to intensify further e-commerce
activities. As SMEs constitute more than 80% of registered firms in Malaysia,
it is thus envisaged that by further improving their participation in
e-commerce it will help improve not only the firms?markets, earnings and
profitability but also the country's future prospects for economic
growth.
Top
Quality Principles Interpreted
Through Socio-Cultural Systems Thinking: The Perspective of Chinese SMEs in
Sabah
by Dr Shelen Ho Wai Han
Historically, the Chinese have succeeded in building their businesses according
to family-focused, hierarchical management styles. Information is shared only
among top management and overall, they are intended to be less transparent in
corporate operations. While these factors have accounted for previous
successes, it is increasingly evident to Chinese businesses that such
management styles will not support their transition into today's globalised and
liberalised business environment. Meanwhile, the new Malaysian economy is
picking up momentum in embracing the idea of developing flexible, agile and
transparent organisations. Many researchers believe that Chinese businesses
would benefit by shifting focus from relationship-based business ventures to
strategic thinking for its business model. No doubt, but why have most not
taken up the challenge yet?
The study investigates the appropriateness of the eight quality management
principles underlying the ISO 9000 standards interpreted in the Chinese
business cultural context, focusing on the assumptions given by the
International Organisation for Standardisation (ISO) of the managerial actions
in the application of the principles as guidelines for implementing the ISO
9000 quality management system for improved organisation performance.
The study concludes that ethnic Chinese cultural beliefs have had great impact
on the adoption of imported modern management theory in Chinese business
settings. Unless management practices are interpreted in the local cultural
context and applied with sensitivity to the belief systems of the ethnic group,
they would be inefficient and ineffective for bringing about sustained
improvements to the organisation concerned.
Top
Back
|