Showing papers in "International Journal of Economics and Management in 2022"

Corporate Sustainability and Firms' Financial Performance: Evidence from Malaysian and Indonesian Public Listed Companies

Abstract: The aim of study is to examine the impact of corporate sustainability (ESG) on the financial performance for Malaysia and Indonesia. A sample was selected comprising of 36 companies listed in Bursa Malaysia and 24 companies listed in Indonesia Stock Exchange over the ten-year period 2010-2019. Using fixed effect (FE) and pooled OLS suggest that ESG practices are positively associated with financial performance. This result implies that companies engaged in environmental, social and governance aspects have a higher shareholder value. A good economy condition encouraged companies to integrate ESG aspects and rewarded investors with good financial return (ROE). Companies with lesser governance practice would increase shareholders value (ROE). Essentially, this empirical evidence confirms stakeholder’s theory and agency theory. The implication of this study is to strengthen the development of sustainability from ESG practice and in line with current agenda of sustainable finance for the policymakers. Indeed, this study encourages more potential investors to invest companies with ESG practices.

Corporate Sustainability and Firms' Financial Performance: Evidence from Malaysian and Indonesian Public Listed Companies

Abstract: The aim of study is to examine the impact of corporate sustainability (ESG) on the financial performance for Malaysia and Indonesia. A sample was selected comprising of 36 companies listed in Bursa Malaysia and 24 companies listed in Indonesia Stock Exchange over the ten-year period 2010-2019. Using fixed effect (FE) and pooled OLS suggest that ESG practices are positively associated with financial performance. This result implies that companies engaged in environmental, social and governance aspects have a higher shareholder value. A good economy condition encouraged companies to integrate ESG aspects and rewarded investors with good financial return (ROE). Companies with lesser governance practice would increase shareholders value (ROE). Essentially, this empirical evidence confirms stakeholder’s theory and agency theory. The implication of this study is to strengthen the development of sustainability from ESG practice and in line with current agenda of sustainable finance for the policymakers. Indeed, this study encourages more potential investors to invest companies with ESG practices.

The Impact of the Investor Sentiment Index (SMI) on the Malaysian Stock Market during the COVID 19 Pandamic

Abstract: COVID-19 is a highly contagious viral infection that has changed the world, with many human lives being lost. This study aimed to analyse investors' sentiment and stock market behaviour in Malaysia during the COVID-19 pandemic. Stock market performance was measured through the FTSE BURSA 100 Index (T100) from January 29, 2020, until March 31, 2021, by employing principal component analysis (PCA) to construct the investors' Sentiment Index (SMI). The results indicated that the sudden outbreak of COVID-19 and its rapid spread significantly impacted investors' psychology, which disrupted investors' investment decisions. Furthermore, rapid increases in confirmed COVID-19 cases and deaths increased the uncertainty and unpredictability of the country's economic situation. As a result, the Malaysian financial market showed a steep downward trend during the COVID-19 pandemic

Participation (Islamic) Banking in Turkey: A Bibliometric Analysis and Future Research Agenda

Abstract: Turkey's Muslim heritage is rich and a Muslim majority country. Over time, more Islamic banks have opened around the world, including in Turkey. Turkey calls Islamic banks "participation banks". The study reviews bibliometric and content analysis of Turkish participation banking from Scopus. Scopus data were retrieved on Jan. 20, 2022. The keyword "Islam* or participation and bank* and Turkey or Turkish" was utilized in the title-abs-key. 82 articles and 2 reviews were examined from 1990 to 2021 in Scopus. RStudio, VOSviewer, and Excel analyzed quantitative data. Overall performance, citation (quantitative), and conceptual (qualitative) discussion for further research. The most-cited paper had 73 citations. The most relevant author, countries, institutions, and journals are AYSAN AF with 5 publications, Turkey, Istanbul University, and "International Journal of Islamic and Middle Eastern Finance and Management". The preceding literature evaluation reveals research gaps and study proposals. The analysis includes both mediumand high-quality English papers and reviews from Scopus. It accepts just Turkish participation banking-related papers. Additional research could involve the Web of Science and other units. According to the authors, It's the first bibliometric analysis of participation banking in Turkey. This research may also serve as a model for future Turkish scholars and policymakers.

Sustainability of Stock Market Against COVID-19 Pandemic

Abstract: This study explored the sustainability of the stock market against the COVID-19 pandemic. The impacts of confirmed COVID-19 cases, COVID-19 deaths, and Movement Control Order (MCO) length on the stock market were examined. The Generalized Method of Moments (GMM) estimator was employed to analyze 57 countries’ weekly data from November 4th 2019 to July 5th 2020. The findings showed that the growth in confirmed COVID-19 cases has a significant negative effect on stock market returns, while the growth in COVID-19 deaths has a negative yet statistically insignificant influence on stock market returns. This study also found a non-linear inverted U-shaped relationship between the MCO period and stock market returns, implying that though the MCO has initial positive influences on the stock market, it negatively impacts the stock market after 5.7 weeks. Thus, this study argues that policy responses to the COVID-19 pandemic provide the most compelling explanation for its unprecedented impact on the sustainability of the stock market. Governments should therefore implement a partial lockdown to avoid deterioration of the national economy. Furthermore, government policies and plans to control the COVID-19 epidemic as well as economic stimulus packages to kickstart the economy play crucial roles in boosting economic growth and revitalizing the stock market

The Impact of the Investor Sentiment Index (SMI) on the Malaysian Stock Market during the COVID 19 Pandamic

Abstract: COVID-19 is a highly contagious viral infection that has changed the world, with many human lives being lost. This study aimed to analyse investors' sentiment and stock market behaviour in Malaysia during the COVID-19 pandemic. Stock market performance was measured through the FTSE BURSA 100 Index (T100) from January 29, 2020, until March 31, 2021, by employing principal component analysis (PCA) to construct the investors' Sentiment Index (SMI). The results indicated that the sudden outbreak of COVID-19 and its rapid spread significantly impacted investors' psychology, which disrupted investors' investment decisions. Furthermore, rapid increases in confirmed COVID-19 cases and deaths increased the uncertainty and unpredictability of the country's economic situation. As a result, the Malaysian financial market showed a steep downward trend during the COVID-19 pandemic.

The Antecedents of Managers’ Environmental Management Practices and Financially Responsible Behaviour: Examining Managers’ Behaviour in Malaysia’s Environmentally Sensitive Industries

Abstract: There has been an increasing focus on improving pro-environmental intentions and behaviour. This study has primarily assessed a conceptual model focusing on managers’ intentions and financially responsible behaviour. This study examined the direct influence of; managers’ attitudes, subjective norms, perceived behavioural controls, and religiosity in inducing their intentions to perform pro-environmental practices, leading them to conduct financially responsible behaviour in preserving the environment. This conceptual study employed a quantitative approach and was supported by interviews to understand the findings better. A partial least squares structural equation modelling technique was adopted in analysing and interpreting the data. Data were collected from environmental and financial managers in Public Listed Companies (PLCs) using a survey design questionnaire. Specifically, responses were sought from managers from environmentally sensitive industries. Interviews were conducted to understand managers’ behaviour better. The findings of this study revealed that; subjective norms, pressures, and religiosity positively and significantly influenced managers’ intentions to perform pro-environmental practices. However, these intentions did not lead them to execute financially responsible behaviour in preserving the environment. This study’s findings exposed the need for managers to have business and government support to make preserving the environment mandatory and be financially responsible for preserving the environment.

Moderating Role of Financial Performance on The Relationship Between Board Attributes and Corporate Sustainability Disclosure Compliance

Abstract: The concept of financial performance is of great concern to stakeholders. This empirical paper investigates the moderating role of financial performance on the link between board attributes and corporate sustainability disclosure compliance (CSDC). The going concern of a company depends on its ability to generate returns from operating, investing, and financing activities. Thus, it is crucially important to explore the extent to which a firm's financial performance strengthens the influence of firm-level determinants of CSDC. The sample for the current study consists of 118 Nigerian-listed companies over seven years between 2011 and 2017. The dynamic GMM regression analysis is used for data analysis. The GMM results reveal the moderating effect of return on assets and return on equity on the influence of firm and board attributes on CSDC, evident from significant positive interaction with board size, board independence, gender diversity and audit committee. This implies that when firms gain financial strength to engage in more sustainable activities, this increases the level of corporate sustainability disclosure compliance.

Participation (Islamic) Banking in Turkey: A Bibliometric Analysis and Future Research Agenda

Abstract: Turkey's Muslim heritage is rich and a Muslim majority country. Over time, more Islamic banks have opened around the world, including in Turkey. Turkey calls Islamic banks "participation banks". The study reviews bibliometric and content analysis of Turkish participation banking from Scopus. Scopus data were retrieved on Jan. 20, 2022. The keyword "Islam* or participation and bank* and Turkey or Turkish" was utilized in the title-abs-key. 82 articles and 2 reviews were examined from 1990 to 2021 in Scopus. RStudio, VOSviewer, and Excel analyzed quantitative data. Overall performance, citation (quantitative), and conceptual (qualitative) discussion for further research. The most-cited paper had 73 citations. The most relevant author, countries, institutions, and journals are AYSAN AF with 5 publications, Turkey, Istanbul University, and "International Journal of Islamic and Middle Eastern Finance and Management". The preceding literature evaluation reveals research gaps and study proposals. The analysis includes both mediumand high-quality English papers and reviews from Scopus. It accepts just Turkish participation banking-related papers. Additional research could involve the Web of Science and other units. According to the authors, It's the first bibliometric analysis of participation banking in Turkey. This research may also serve as a model for future Turkish scholars and policymakers.

Uncertainty in Working Capital Management and Firm Performance: A COVID-19 Perspective

Abstract: This study examines the impact of the COVID-19 pandemic on firms' working capital management (WCM) and, eventually, firms’ performance of 4513 China and 1049 United Kingdom (UK) publicly listed firms. Static panel data analysis was used to achieve the objective of this study. By using the cash conversion cycle (CCC) as a proxy for WCM, we discover that COVID-19 has a negative effect on the WCM of Chinese firms. We also found a statistically significant negative relationship between WCM and Chinese firms’ performance. This suggests that when firms are affected by COVID-19 uncertainty, Chinese firms will be compelled to reduce their account receivables, inventory levels, and seek increased credit terms from suppliers. Contrary to Chinese firms, we discover the positive relationship between COVID-19 and WCM for UK firms. Further, the relationship between WCM and UK firms’ performance is positively associated. The greater investment in WCM by UK firms during the COVID-19 period generated a higher firm performance.

Strategic Foresight and Agility: Upholding Sustainable Competitiveness Among SMEs During COVID-19 Pandemic

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Mavengere, N. B. (2013). Information technology role in supply chain’s strategic agility. International Journal of Agile Systems and Management, 6(1), p. 7. https://doi.org/10.1504/ijasm.2013.052209 17. Mohtar, J. (April 2020). SMEs and Covid 19 – A ticking time bomb. The Malaysian Insight. Retrieved 20 April 2020 from https;//www.the malaysianinsight.com. 18. Muhyiddin, M. Y., 2020. Muhyiddin Mohd Yassin: Additional PRIHATIN SME Economic Stimulus Package (PRIHATIN SME+). [Online]. [Accessed 14 July 2021]. Available from: https://www.pmo.gov.my/wpcontent/uploads/2020/04/English-PM-Speech-PRIHATIN Plus-6-4-2020-905pm.pdf 19. Oyedijo, A., 2012. Strategic agility and competitive performance in the Nigerian telecommunication industry: An empirical investigation. American, International Journal of Contemporary Research, 2(3), pp.227-237. 20. Peter, M. K., and Jarratt, D. G., 2015. The practice of foresight in long-term planning. 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The Indirect Effect of Coronavirus Disease (COVID-19) Pandemic on Economic Growth in Malaysia: Evidence from The ARDL Approach

Abstract: This study explores the indirect effect of corona virus (COVID-19) infections on economic growth in Malaysia using the industrial production index (IPI) as a proxy. Since the prevalence of COVID-19 infection, Malaysia’s economy has experienced swindles in its growth, just like other countries economy, and the struggle for survival among countries in which Malaysia’s economy is not exceptional becomes the current issue. This study incorporates the COVID-19 indirect impacts on economic growth which is conditional to COVID-19 deaths. It also explains a way forward for recuperation among economic sectors for faster economic growth in Malaysia. This paper uses the Auto Regressive Distributed Lag (ARDL) model to explore the indirect effect of COVID-19 infections on economic growth conditional on COVID-19 deaths in Malaysia. As an empirical study, the data used were monthly secondary data and were obtained from reliable sources. The findings from the results of the ARDL model, considering the unconditional model show that COVID-19 infections have a negative relationship with economic growth in Malaysia. The conditional models used to find the indirect impact of COVID-19 on economic growth considering the interaction of the variables at mean, maximum and minimum, prove that COVID-19 has an indirect negative effect on economic growth when COVID-19 deaths are at their mean and maximum. The marginal effect result shows a negative relationship and significance at 1%, indicating that increase in COVID-19 infections leads to decrease in economic growth in Malaysia conditional to COVID-19 deaths

The Kuznets Curve, Information and Communication Technology, and Income Inequality in Malaysia

Abstract: This study re-investigates the presence of the Kuznets curve in the context of Malaysia, by employing an autoregressive distributed lag (ARDL) approach. We seek to examine the non-linear impacts of economic growth on income inequality by investigating the existence of a second turning point to the relationship. Furthermore, we also assess the impacts of information and communication technology (ICT) (through internet, mobile, and broadband usage) on income inequality, besides the determinants of income inequality which have been extensively studied within the framework. This endeavour leveraged a time series analysis whereby the data was employed from the time period of 1970–2018. Our estimation results support the S-curve hypothesis that relates economic growth to inequality starting from the back portion of the inverted U-shaped curve. Our results confirm that ICT can actually be part of an active economic policy aiming to reduce existing income inequalities.

Do Proactive Personality and Self-Efficacy Really Matter in Shaping Social Entrepreneurial Intention?

Abstract: The primary aim of this paper is to provide insights into the determinants of social entrepreneurial intention (SEI) among students in Malaysia. For data collection, a self administered questionnaire was distributed among students in public and private universities. The structural equation modelling-partial least square (SEM-PLS) technique was employed to test the research hypotheses. The data was analysed using the SmartPLS software. Research findings indicated that attitude toward social entrepreneurship (ATSE) is the most significant factor in shaping the intention to become a social entrepreneur, followed by social entrepreneurial self-efficacy (SE-SE) and proactive personality (PP). Additionally, proactive personality contributes to shaping favourable ATSE. Understanding the factors that impact SEI could help us to identify the people who are more likely to establish a social venture in order to equip them with the necessary resources. Nevertheless, lack of awareness and “social entrepreneurial mindset” among students was found an obvious obstacle to SEI, which requires further attention of policymakers and the ministry of higher education. To date, an abundant body of literature confirms that attitude is one of the most significant determinants of intention and consequent behaviour; however, the antecedents of attitude are yet to be discovered. The original contribution of this study is extending the theory of planned behaviour by examining the factors that affect SEI.

The Effects of Credit Supply Shocks on Malaysia's Economy

Abstract: This study has examined the impacts of credit supply shocks and other common economic shocks (aggregate demand & supply and monetary shocks) on Malaysia's macroeconomic variables, using the Bayesian structural vector autoregressive (SVAR) model and employing sign restrictions. The results showed that an expansionary credit supply shock positively affected the Malaysian economy, consistent with the existing literature. Based on the variance decomposition finding, credit supply shocks explained a significant portion of the anticipated variation in the GDP growth, inflation, and, most importantly, credit growth in Malaysia. This study further decomposed total private non-financial corporate loans into two components: households and non-financial firms. Unlike other economies that have extensively researched this subject matter (US, UK, Euro Area), the growth rate of households and non-financial firms differed greatly in Malaysia. The empirical findings revealed considerable distinctions between these two components, indicating that different treatments or policy formulations are required rather than employing the same policy to boost or govern Malaysia's credit market.

Monetary Policy Efficiency, Financial Market Development and Financial Stability in Developing Countries

Abstract: This study evaluated the impact of monetary policy efficiency (MPE) and financial market development (FMD) on financial stability using the credit gap as a proxy. New datasets were constructed for the MPE of 63 developing economies from 1990:Q1 to 2021:Q4. The panel homogeneity assumption was verified using the Chow and Roy-Zellner tests, and the findings showed that the model was not homogenous. Thus, the pooled mean group (PMG) estimator was used. The empirical results revealed that MPE and FMD significantly impacted the credit gap. The effects of MPE and FMD on financial stability were as substitutes. Since the sample was divided into two groups: high and low-middle income nations, the conclusion was robust, and the negative connection between the variables remained. In addition, a dynamic panel estimation was also applied, which found significant effects of MPE and FMD on the credit gap.

Resilient Trade During The COVID-19 Pandemic: Why Does Export Diversification Matter?

Abstract: Trade economists emphasised that export diversification plays an essential role to mitigate trade shocks. Nevertheless, little empirical evidence justified the argument regarding pandemic-led disruption effects. The study examines the role of export diversification in mitigating the adverse effect of the coronavirus disease (COVID-19) pandemic in Malaysia. The results suggest that a country-based export diversification plays a vital role in minimising COVID-19 exports disruptive effect, with greater weight on the regional trade. Nevertheless, long-term product diversification is relatively beneficial to promote growth and trade resilience.

Attitudes Toward Vaccination and Its Impact on Economy

Abstract: Rapid rollouts of the vaccine are imperative for economic recovery; however, vaccine hesitancy could draw out not only the pandemic but also social distancing and lockdown requirements. The main purpose of this paper is to empirically investigate whether the vaccination rate affects government budget constraints as well as whether vaccine hesitancy matters in controlling the dynamics of the Covid-19 epidemic in Uzbekistan. We integrated a Susceptible-Exposed-Infectious-Removed (SEIR) epidemic model with a macroeconomic model to explore the impact of the vaccination. Our results show that vaccine hesitancy substantially influences excess COVID-19-related deaths, such that governments that are able to sustain quick vaccine rollout rates would have a 20-times lower excess death rate. A slow-paced vaccine rollout has compounded effects over time, producing much heavier consequences for the population than a rapid rollout rate. In Uzbekistan, a counterfactual exercise that intensified vaccine hesitancy between April and November 2021 likely increased the death toll by approximately thousand deaths. Therefore, the policy gains of accelerating the vaccination rate are significant, given that it would minimize both cumulative mortality and the risk of new virus variants while achieving herd immunity. Concurrently, efforts to mitigate hesitancy are crucial, particularly if the percentage of the population that is against the vaccination is greater than the percentage needed for herd immunity. To this end, our empirical study helps shed light on the challenging dynamics between health and the economy during the pandemic as well as the mechanisms through which these effects take place.

Do Vaccines’ Announcements Cure Stock Market Volatility? Evidence From the Gulf Cooperation Council (GCC) Markets

Abstract: COVID-19 has been impacting stock markets worldwide. Yet, a scant amount of research has been done on the stock markets of the Gulf Cooperation Council (GCC) markets. In this work, we aim to investigate whether and to what extent local and international events linked to the COVID-19 outbreak have impacted stock market volatility of the GCC countries. We model stocks’ returns of these countries between January and December 2020, decomposing the errors’ heteroskedasticity to account for main international and local events related to COVID-19. These events have been included as structural breaks and measured using dichotomous variables. Both local and international events were found to be associated with significant variations in volatility; however, local events seem to have impacted volatility to a lesser extent compared to international events. The announcement of the status of pandemic by the WHO had the greatest impact on volatility across the GCC markets, even greater than the impact associated to the drop in oil prices. The announcement of local approval of vaccine led to a reduction in volatility in UAE (ADX), Qatar, Saudi Arabia and Bahrain.

The Kuznets Curve, Information and Communication Technology, and Income Inequality in Malaysia

Abstract: This study re-investigates the presence of the Kuznets curve in the context of Malaysia, by employing an autoregressive distributed lag (ARDL) approach. We seek to examine the non-linear impacts of economic growth on income inequality by investigating the existence of a second turning point to the relationship. Furthermore, we also assess the impacts of information and communication technology (ICT) (through internet, mobile, and broadband usage) on income inequality, besides the determinants of income inequality which have been extensively studied within the framework. This endeavour leveraged a time series analysis whereby the data was employed from the time period of 1970–2018. Our estimation results support the S-curve hypothesis that relates economic growth to inequality starting from the back portion of the inverted U-shaped curve. Our results confirm that ICT can actually be part of an active economic policy aiming to reduce existing income inequalities.

Bank Ownership and Non-Performing Loans of Islamic and Conventional Banks in An Emerging Economy

Abstract: This study assesses the non-performing loans of conventional and Islamic banks as well as the influence of ownership on the non-performing loans of conventional and Islamic banks. Due to fundamental differences in Islamic and conventional bank such as funding, non-performing loans might have differing effects on Islamic and conventional banks. This study utilised data of 26 conventional banks and 16 Islamic banks from Malaysia from 2012 to 2020. A Random Effect model was used to investigate the difference between conventional and Islamic banks’ non-performing loans as well as the influence of ownership on non-performing loans of conventional and Islamic banks. Results showed no significant differences for non-performing loans of conventional and Islamic banks. This result implies that despite the fact that Islamic banks may benefit from lower agency costs, this does not considerably decrease the likelihood of non-performing loans. Foreign Islamic banks shows higher non-performing loans in comparison to domestic Islamic banks. However, there were no significant differences for non-performing loans between foreign conventional and domestic conventional banks. This study suggests that Islamic bankers, particularly those intending to expand into other countries, investigate nonperforming loans, which can impact the risk of a foreign Islamic bank.

Bank Specific as Moderator Between Intellectual Capital and The Performance of Malaysian Microfinance Institutions

Abstract: This study aimed to investigate whether intellectual capital (IC) impacts the performance of microfinance institutions (MFIs). This study also attempted to uncover the effect of microfinance institution specification (banks or non-banks) as a moderating variable in the association between intellectual capital and MFIs performance. There were 300 respondents, however, only 156 managers answered the structured questionnaires that were sent out using the purposive sample technique. The partial least square structural equation modeling (PLS-SEM) was used to analyze the research model in this study. The findings show that human capital and structural capital have a favorable impact on MFI performance. This influence, however, does not extend to the MFIs' customer capital and social capital. Furthermore, the research model can explain 59.9 percent of the significant variance in MFI performance. This study contributes to the theoretical expansion of the resource-based view (RBV) in forecasting the MFIs success. The framework suggested in this study can be used as a reference to assist MFIs management in selecting relevant intellectual capital aspects to improve Malaysian MFIs.

The Willingness to Pay for Beach Recreational Facilities in Malaysia

Abstract: The tourism sector plays an important part in Malaysia's economy. It includes beach and recreational tourism. However, most recreational beaches in Malaysia do not impose an entrance fee on visitors. Depending on government funding to maintain recreational beach facilities is not the best option for the future. Therefore, funding directly from visitors is needed to help cater for beach maintenance costs. Based on this, it is crucial to understand how much visitors are willing to pay for the recreational use of beaches, as any money collected could be used to help to improve facilities and services at beach areas. This study investigated visitors' willingness to pay for recreational beach facilities and has provided policy recommendations for better management of tourist facilities and services in the future. Teluk Kemang beach in Port Dickson was chosen as the case study location. This study applied the Choice Experiments (CE) method, and the model used was the Conditional Logit (CL) model. This research used four attributes: amenities, recreational facilities, cleanliness, and entrance fee. The CL results revealed that visitors were willing to pay for good amenities and cleanliness, with values of RM2.07 and RM2.43, respectively. Therefore, it was discovered that it was practical to charge an entrance fee to cover improved maintenance of beach facilities.

The Impacts of The Systematic, Idiosyncratic Risks and Market Sentiment on China A-Shares Performances

Abstract: The purposes of this paper are (i) to examine 3 driving factors affecting China A-shares market performance; namely systematic risk, idiosyncratic risk, and market sentiment, and (ii) to investigate the relationship between state-owned enterprise (SOE) & non-SOE and stock returns. In addition, the study also analyze normal condition and the impacts of Sino-US trade war and Covid-19 pandemic. This study employs monthly data which is divided into two parts namely (i) 2004-2020 period and (ii) 2018-2020 period. Multiple classic asset pricing models are employed to investigate the impacts of the 3 driving factors on stock returns. The results showed that these 3 driving factors exert significant influence on China A-shares in 2004-2020, However, the impact of market sentiment is weak during the period 2018-2020. Furthermore, market risks, firm size and B/M factor show great impacts on both SOE and non-SOE, profitability factor affecting non-SOE stock return is more important than investment which improves SOE stock return. This study proposes that investors and companies pay more attention to systematic risk and idiosyncratic risk, which potentially have greater impact on the stock market and to reduce unnecessary economic losses.

Time-Varying Return Predictability and Adaptive Behavior in The U.S. Commodity Markets During COVID-19

Abstract: The study investigates the time-varying efficiency of the four most commonly traded international commodities from the U.S. Chicago Board of Options Exchange (CBOE) over a more extended period as well as during COVID-19. The study also explores how adaptive behavior of returns induces profitable opportunities in the commodity markets. Daily returns of commodity indices (gold, silver, oil, metal) are divided into subsamples of six years, to apply a battery of linear/nonlinear tests. The study uncovers the linear and nonlinear serial dependence in returns from commodities and finds evidence of time-varying volatility, thus consistent with the Adaptive Market Hypothesis over the full sample period. Moreover, returns from all the commodities are highly volatile and predictable during COVID-19.

The Influence of Parental Financial Socialisation and Financial Literacy on University Student's Financial Behaviour

Abstract: Children away from their parents while pursuing higher education at universities face new challenges in managing their finances and preparing to be financially independent. This study analysed and compared the effects of parental financial socialisation and financial literacy on Indonesian and Malaysian university students' financial behaviour. In total, 204 students from the Faculty of Human Ecology at IPB University and Universiti Putra Malaysia participated in the study. Data were gathered using a self-reporting questionnaire using the convenience sampling method. The independent sample t-test and multiple regression analysis were performed on the data. The results of the t-test showed that Malaysian students scored significantly higher in parental financial socialisation and financial behaviour but lower in financial literacy than Indonesian students. Moreover, the regression analyses revealed that parental financial socialisation and students' financial literacy were highly significant in influencing the sampled students' financial behaviour. However, by splitting the sample based on the student's country of origin, this study demonstrated that Malaysian students' financial behaviour was only significantly influenced by parental financial socialisation, while Indonesian students' financial behaviour was only significantly determined by financial literacy. These findings implied that Malaysian parents were more involved in shaping their children's financial behaviour or decisions. In contrast, Indonesian students were more independent from their parents, and their financial literacy level predominantly influenced their financial behaviour.

Firms’ Salary Adjustment in Response to Crises

Abstract: This study aims to investigate firms’ behavior on salary adjustment in response to the Covid-19 crisis and presents findings on median basic salary change in the Malaysian labor market by occupational groups during quarters 3 and 4, 2020. The result finds a lower prevailing salary offer for the newly employed. For high-skilled occupations, employees above the age of 40 have seen the median salary class dropping one class below, while the young cohort below age 40 climbs up one salary class. The study has employed different machine learning techniques to build classification models for the prediction of the binary outcomes, namely “salary freeze or cut”, or “salary increase”. The findings discovered that the important factors that increase the likelihood of a “salary freeze or cut” for the newly employed had been consistently attributed to the occupational group by MASCO and the number of available job vacancies. Besides that, the job opportunity and salary potential for mid-skilled jobs are found to be shrinking despite the younger age cohort of workers receiving a higher median salary in Q4 as compared to Q3; this, however, comes with a reduction in job vacancies.

Migrant Food Handlers’ Impacts on Food Quality and Safety in Malaysia Food Service Industry

Abstract: This study aims to empirically examine the migrant food handlers’ perceived knowledge, skills, and attitudes and their impact on food quality and safety in the context of Malaysia’s foodservice industry. Using the data gathered from 198 supervisors and managers from food premises in Malaysia and analysis using SPSS (version 20) and SmartPLS 3.0 software, this research found that migrant food handlers have moderate perceived knowledge, skills and attitudes in food handling practices impact the food quality and safety. Specifically, this study confirmed that knowledge and attitudes positively and significantly affect food quality and food safety. However, insignificant results were found between skills and food safety, even though it showed a substantial impact on food quality. The findings are original and unique. It is one of the first studies to investigate the knowledge, skills, and attitude of migrant food handlers their effect on food quality and food safety, especially in Malaysia. Besides, this study extends the established theories from the literature on knowledge, skills and attitudes analysing in the foodservice sector. Therefore, this research finding is valuable for food services practitioners to focus on enhancing food quality and safety through the migrant workforce.

The Impacts of The Systematic, Idiosyncratic Risks and Market Sentiment on China A-Shares Performances

Abstract: The purposes of this paper are (i) to examine 3 driving factors affecting China A-shares market performance; namely systematic risk, idiosyncratic risk, and market sentiment, and (ii) to investigate the relationship between state-owned enterprise (SOE) & non-SOE and stock returns. In addition, the study also analyze normal condition and the impacts of Sino-US trade war and Covid-19 pandemic. This study employs monthly data which is divided into two parts namely (i) 2004-2020 period and (ii) 2018-2020 period. Multiple classic asset pricing models are employed to investigate the impacts of the 3 driving factors on stock returns. The results showed that these 3 driving factors exert significant influence on China A-shares in 2004-2020, However, the impact of market sentiment is weak during the period 2018-2020. Furthermore, market risks, firm size and B/M factor show great impacts on both SOE and non-SOE, profitability factor affecting non-SOE stock return is more important than investment which improves SOE stock return. This study proposes that investors and companies pay more attention to systematic risk and idiosyncratic risk, which potentially have greater impact on the stock market and to reduce unnecessary economic losses.