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Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?

Malaysia was the only nation that provided moratorium on loan repayment in a blanket basis during the global pandemic. Thus, this study examines the whether moratorium has a contractionary or an expansionary impact from the perspective of loan repayment towards the volatility of banking stock prices...

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Main Authors: Azmi Majid, Rozilee Asid, Lim, Thien Sang, Zaiton Osman
Format: Article
Language:English
Published: Penerbit Universiti Malaysia Sabah 2024
Subjects:
HG4001-4285 Finance management. Business finance. Corporation finance
RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection
Online Access:https://eprints.ums.edu.my/id/eprint/42681/1/FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/42681/
https://doi.org/10.51200/mjbe.v11i2.5784
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spelling my.ums.eprints.426812025-01-17T06:44:54Z https://eprints.ums.edu.my/id/eprint/42681/ Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? Azmi Majid Rozilee Asid Lim, Thien Sang Zaiton Osman HG4001-4285 Finance management. Business finance. Corporation finance RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection Malaysia was the only nation that provided moratorium on loan repayment in a blanket basis during the global pandemic. Thus, this study examines the whether moratorium has a contractionary or an expansionary impact from the perspective of loan repayment towards the volatility of banking stock prices listed in Bursa Malaysia. The Exponential GARCH (EGARCH) was employed with daily data from 2 January 2019 to 31 December 2021. The empirical findings showed that the loan-repayment moratorium induced a positive shock to the volatility of Hong Leong Bank, Public Bank, RHB Bank, and Alliance Bank. However, all these banks exhibit a leverage effect, and negative shocks were more pronounced towards their stock price volatility during the moratorium implementation. The findings were crucial for investors and authorities to understand the impact of a moratorium on the banks towards the stock price. Penerbit Universiti Malaysia Sabah 2024 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/42681/1/FULL%20TEXT.pdf Azmi Majid and Rozilee Asid and Lim, Thien Sang and Zaiton Osman (2024) Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? Malaysian Journal of Business and Economics (MJBE), 11 (2). pp. 1-16. https://doi.org/10.51200/mjbe.v11i2.5784
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
topic HG4001-4285 Finance management. Business finance. Corporation finance
RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection
spellingShingle HG4001-4285 Finance management. Business finance. Corporation finance
RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection
Azmi Majid
Rozilee Asid
Lim, Thien Sang
Zaiton Osman
Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
description Malaysia was the only nation that provided moratorium on loan repayment in a blanket basis during the global pandemic. Thus, this study examines the whether moratorium has a contractionary or an expansionary impact from the perspective of loan repayment towards the volatility of banking stock prices listed in Bursa Malaysia. The Exponential GARCH (EGARCH) was employed with daily data from 2 January 2019 to 31 December 2021. The empirical findings showed that the loan-repayment moratorium induced a positive shock to the volatility of Hong Leong Bank, Public Bank, RHB Bank, and Alliance Bank. However, all these banks exhibit a leverage effect, and negative shocks were more pronounced towards their stock price volatility during the moratorium implementation. The findings were crucial for investors and authorities to understand the impact of a moratorium on the banks towards the stock price.
format Article
author Azmi Majid
Rozilee Asid
Lim, Thien Sang
Zaiton Osman
author_facet Azmi Majid
Rozilee Asid
Lim, Thien Sang
Zaiton Osman
author_sort Azmi Majid
title Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
title_short Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
title_full Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
title_fullStr Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
title_full_unstemmed Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
title_sort does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
publisher Penerbit Universiti Malaysia Sabah
publishDate 2024
url https://eprints.ums.edu.my/id/eprint/42681/1/FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/42681/
https://doi.org/10.51200/mjbe.v11i2.5784
_version_ 1823092347391442944
score 13.250246

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