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Identifying the factors affecting financial condition of Malaysia

This research focuses on the domestic and external determinants of Malaysia’s financial condition, ranging from January 2003 and March 2019. To represent the domestic determinants, a total amount of twelve financial indicators are adopted to compute three indices using the Principal Component Approa...

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Main Authors: Pang, Yee-Ling, Lee, Hock Ann
Format: Article
Language:English
English
Published: Universiti Malaysia Sarawak 2021
Subjects:
DS591-599 Malaysia. Malay Peninsula. Straits Settlements
HG1-9999 Finance
Online Access:https://eprints.ums.edu.my/id/eprint/30267/1/Identifying%20the%20factors%20affecting%20financial%20condition%20of%20Malaysia%20ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/30267/2/Identifying%20the%20factors%20affecting%20financial%20condition%20of%20Malaysia%20FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/30267/
https://publisher.unimas.my/ojs/index.php/IJBS/article/view/3185
https://doi.org/10.33736/ijbs.3185.2021
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spelling my.ums.eprints.302672021-08-21T06:54:08Z https://eprints.ums.edu.my/id/eprint/30267/ Identifying the factors affecting financial condition of Malaysia Pang, Yee-Ling Lee, Hock Ann DS591-599 Malaysia. Malay Peninsula. Straits Settlements HG1-9999 Finance This research focuses on the domestic and external determinants of Malaysia’s financial condition, ranging from January 2003 and March 2019. To represent the domestic determinants, a total amount of twelve financial indicators are adopted to compute three indices using the Principal Component Approach (PCA). Three of the indices embody three respective financial segments, particularly the banking system, the foreign exchange market, and the capital market within the Malaysian financial system. These three segments offer a glimpse of the Malaysian financial condition. For the external determinant, the US total assets of all Federal Reserve Banks are adopted as the proxy for the size of the US balance sheet. This research intends to evaluate the validity of the long-run association and its corresponding level of effect between the computed indices and the US balance sheet size via the conduct of the ARDL bounds test approach. The research findings have verified the validity of the long-run association between the Malaysian financial condition and the US balance sheet size. There is a substantial role played by the US balance sheet size in affecting the well-being of Malaysian financial condition, given the statistical significance is shown in the association between the US balance sheet size and the financial-segment-based indices, whereby its strongest influence is found on the banking system condition. Universiti Malaysia Sarawak 2021 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/30267/1/Identifying%20the%20factors%20affecting%20financial%20condition%20of%20Malaysia%20ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/30267/2/Identifying%20the%20factors%20affecting%20financial%20condition%20of%20Malaysia%20FULL%20TEXT.pdf Pang, Yee-Ling and Lee, Hock Ann (2021) Identifying the factors affecting financial condition of Malaysia. International Journal of Business and Society, 22. pp. 403-421. ISSN 1511-6670 https://publisher.unimas.my/ojs/index.php/IJBS/article/view/3185 https://doi.org/10.33736/ijbs.3185.2021
institution Universiti Malaysia Sabah
building UMS Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
url_provider http://eprints.ums.edu.my/
language English
English
topic DS591-599 Malaysia. Malay Peninsula. Straits Settlements
HG1-9999 Finance
spellingShingle DS591-599 Malaysia. Malay Peninsula. Straits Settlements
HG1-9999 Finance
Pang, Yee-Ling
Lee, Hock Ann
Identifying the factors affecting financial condition of Malaysia
description This research focuses on the domestic and external determinants of Malaysia’s financial condition, ranging from January 2003 and March 2019. To represent the domestic determinants, a total amount of twelve financial indicators are adopted to compute three indices using the Principal Component Approach (PCA). Three of the indices embody three respective financial segments, particularly the banking system, the foreign exchange market, and the capital market within the Malaysian financial system. These three segments offer a glimpse of the Malaysian financial condition. For the external determinant, the US total assets of all Federal Reserve Banks are adopted as the proxy for the size of the US balance sheet. This research intends to evaluate the validity of the long-run association and its corresponding level of effect between the computed indices and the US balance sheet size via the conduct of the ARDL bounds test approach. The research findings have verified the validity of the long-run association between the Malaysian financial condition and the US balance sheet size. There is a substantial role played by the US balance sheet size in affecting the well-being of Malaysian financial condition, given the statistical significance is shown in the association between the US balance sheet size and the financial-segment-based indices, whereby its strongest influence is found on the banking system condition.
format Article
author Pang, Yee-Ling
Lee, Hock Ann
author_facet Pang, Yee-Ling
Lee, Hock Ann
author_sort Pang, Yee-Ling
title Identifying the factors affecting financial condition of Malaysia
title_short Identifying the factors affecting financial condition of Malaysia
title_full Identifying the factors affecting financial condition of Malaysia
title_fullStr Identifying the factors affecting financial condition of Malaysia
title_full_unstemmed Identifying the factors affecting financial condition of Malaysia
title_sort identifying the factors affecting financial condition of malaysia
publisher Universiti Malaysia Sarawak
publishDate 2021
url https://eprints.ums.edu.my/id/eprint/30267/1/Identifying%20the%20factors%20affecting%20financial%20condition%20of%20Malaysia%20ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/30267/2/Identifying%20the%20factors%20affecting%20financial%20condition%20of%20Malaysia%20FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/30267/
https://publisher.unimas.my/ojs/index.php/IJBS/article/view/3185
https://doi.org/10.33736/ijbs.3185.2021
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score 13.211869

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