Labuan Bulletin of International Business & Finance (LBIBF)

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Volume 7 (2009)

REGIONAL INCOME DISPARITY IN MALAYSIA: IS SABAH CONVERGING, CATCHING-UP WITH OR FALLING BEHIND OTHER STATES IN MALAYSIA? 1-12
File Size:
193.56 kB
Author:
Muzafar Shah Habibullah, A.M. Dayang-Affizzah, Kian-Ping Lim
Date:
16 April 2014

Abstract

Whether poor economies tend to converge towards rich ones or else to diverge over time is an issue that has attracted the attention of policymakers and academics alike for some decades. Economic convergence or divergence is a topic of considerable interest and debate, not only for validating or otherwise the two leading and competing growth models (the neoclassical and the endogenous growth approaches) but also for its policy-oriented implications. In Malaysia, the issue of economic convergence is also much debated. Despite the various Malaysia Plans for the past three decades, regional disparity between states remains. Thus, the objective of the present paper is to address the question whether the state of Sabah has been converging, catching-up or falling behind the other states in Malaysia. Using annual data for the period 1965 to 2003, our univariate unit root test result suggest that the state of Sabah has been catching-up with other states except with the state of Terengganu. In this respect, the local government has an important role to play in enhancing growth by providing stable economic environment for investment and other productive economic activities. This will ensure convergence can take place in the future.

HERDING MEASURES IN EQUITY MARKETS: A CASE STUDY OF BURSA MALAYSIA 13-32
File Size:
262.67 kB
Author:
Yoke-Chen Wong, Kim-Lian Kok
Date:
16 April 2014

Abstract

This study examines the issue of herding in the Malaysian equity market over the period 1993 – 2004. Using the method proposed by Christie and Huang (1995), we did not detect any evidence of herding for the whole market, the large firms or the small firms during the pre-crisis, crisis and the post-crisis periods. The modified method of Christie and Huang (1995) produced similar findings. However, using the method proposed by Chang et al. (2000), herding was found in the overall market in the whole period. In the pre-crisis period, herding in the market during the market decline could be attributed to both the large and small firms. Rather surprisingly, there was no herding in the crisis period. In the post-crisis period, herding was detected in the market during market rise and this could be attributed to the small firms. Large firms, on the other hand, witnessed herding during market decline. The modified method of Chang et al. (2000) detected more evidence of herding with the use of cross-sectional inter-quartile range but less evidence of herding when cross-sectional standard deviation is used.

MOBILE WALLET ACCEPTANCE IN SABAH: AN EMPIRICAL ANALYSIS 33-52
File Size:
227.31 kB
Author:
Hanudin Amin
Date:
16 April 2014

Abstract

Purpose - Technological proliferation has changed the practice in which financial services are transacted, with mobile wallet being the latest development in this area. This paper aims at explaining the factors that encourage bank customers to adopt mobile wallet in Sabah. Design/methodology/approach – Extends the applicability of the technology acceptance model (TAM) in a mobile wallet context, by adding perceived expressiveness, knowledge about mobile wallet and perceived credibility in addition to perceived usefulness and perceived ease of use. Findings - Results suggest that perceived usefulness, perceived ease of use, perceived expressiveness and knowledge about mobile wallet are important determinants of mobile wallet acceptance. Research limitations/ implications - The relatively small size of the sample somewhat limits generalizations. However, this is not a serious limitation, as the author believes this sample size able to contribute significantly, at least at exploratory level. Moreover, there may be a need to add for additional independent variables to the extended TAM, further expanding the number of situations to which it applies. Practical implications - This study will be primarily beneficial to the commercial banks since they will understand the usable factors toward mobile wallet acceptance. Originality/value - Develops a specific version of TAM to better reflect mobile wallet context in Malaysia.

TERMS OF TRADE AND TRADE BALANCE IN KOREA, HONG KONG AND SINGAPORE 53-76
File Size:
297.64 kB
Author:
Hock Tsen Wong
Date:
16 April 2014

Abstract

This study examines the impact of terms of trade on trade balance in Korea, Hong Kong, and Singapore. Generally, the results of the cointegration tests show that there is a long-run relationship between terms of trade and trade balance. More specifically, an increase in terms of trade will lead to a decrease in trade balance. For Hong Kong, trade balance is found to Granger cause terms of trade and there is bilateral Granger causality between terms of trade volatility and trade balance. Terms of trade has some predictive power on trade balance.

STRUCTURAL CHANGE IN THE EFFICIENCY OF THE ASEAN STOCK MARKETS AFTER THE MILLENNIUM 77-99
File Size:
231.39 kB
Author:
Sheung Tat Chan and Terence Tai-Leung Chong
Date:
16 April 2014

Abstract

This paper examines the performance of the time-series model based trading rules in the ASEAN stock markets. Our results show that the trading rules are in general profitable, especially in the Malaysian and Indonesian stock markets, but the profitability has declined in recent years. Using a structural-change test, we find evidence that the efficiency of the ASEAN stock markets has improved after the millennium.

 
 
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