1,721,038 research outputs found
A comparison of discriminant analysis and financial ratios in predicting financial distress
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Portfolio selection: efficient diversification of investment in gold during financial crisis
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A multi country study of co-integration on bonds yields in selected five Asia Pacific countries.
No full textIn this paper, we study the dynamic relationship of bond yields in Malaysia, Singapore, Thailand, India, and Japan by using 43 observations for the period of 2007 to July 2010. This study analyzes the government bond returns and the yields curve for the five countries with different term to maturity of 2 years, 5 years, 10 years, 15 years, and 20 years. The results indicate that the yields on government bond for the five countries are all consistent with the term structure of interest rate theory where the yields to maturity increase as the term to maturity increase during the period of 2007 to 2010. There is also evidence supporting the yields to maturity for all five countries are significantly stationary at order one or I(1). Moreover, the finding also show that there are a few groups of countries was found co-integration with one vector. In long run, the result find that between the group of countries, Malaysia and India, Singapore and Thailand, and Singapore and India, the bond returns for the 15 years term to maturity are co-integrated with at least one co-integrating vectors
Earning response coefficients of firms in merger and acquisition.
No full textA large body of studies has done to examine the fundamental relationship between accounting variables and firm valuation using earnings response coefficients. They further demonstrate that the earnings have valuation and information content. In fact, when investors weight current-period earnings heavily, the stock price response to earnings is much greater and more persistent. However, in terms of acquisition events, whether earnings are informative as measured by the magnitude of the related stock price response conditional on unexpected earnings is a question because the only few research conducted earlier are more concentrate on the merger event. Therefore, this study is important in order to verify or reject the characteristics of return-earnings relationship identified in samples of acquiring and acquired firm in the Malaysia market. The results displayed in the study reveal that the stock prices change in a statistically significant manner in response to earnings increases and decreases is quite evident only on the target firms and not on the acquiring firms. The poor price-to-earnings association before and after the announcement dates on the acquiring firms is due to overestimation of the public on the future economic value that can gain after the corporate merger/acquisition. The effect is also strong over in the short window interval and not the long window interval
Revisiting Malaysia banks share price response to earnings announcements
No full textthis study used the most
accepted events study and regression to test the reaction of banks share prices on earnings
announcement. The event study shows that the directional effects of earnings announcements are
strong. The positive unexpected earnings increase the abnormal returns, and the negative
unexpected earnings decrease the share price. The effects are asymmetricalthe negative
earnings produce higher negative abnormal returns. These results were confirmed in the
regression analysis. The positive earnings announcement ERC is only significant at 10% level,
whereas the negative ERC is significance at 5% level. The negative ERC is larger than the
positive ERC. The results that we obtained suggest that there is a significant relationship
between the standardized unexpected earnings and cumulative abnormal returns. It implies that
stock prices change in a statistically significant manner in response to earnings increases and
decreases. The finding of earnings-to-price relation in the stock market is consistent with that
documented in previous studies on developing and developed markets
Growth opportunities, earned premium income and commission of insurance industry in Malaysia
No full textInsurance industry is one of the important industries in Malaysia. Due to continuing strong growth in the Malaysian economy the market demand for products has been increasing. Hence, a strong financial fundamental combined with industry strength is vital for insurance-based companies to continuously do well in their business. This paper analyses the financial performance and also investigates whether there is growth opportunity of eight insurance-based companies in Malaysia from year 2007 to year 2011. The financial ratio analysis shows that it is important and useful for companies to perform financial performance analysis to guide them on their current status and help them to plan for better financial prospects. Linear regression results examine the relationship of growth opportunity for the insurance industry in Malaysia with earned premium income, net investment income, net claims incurred, commissions paid, total assets and total liabilities. Significant negative relationship is found between commissions paid and growth opportunity insurance industry in Malaysia. The significant relationship between the commission paid and growth opportunity insurance industry in Malaysia suggests that companies should adequately implement or administer arrangement on commission paid policy
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