The effect of board capital on Malaysian banking finacial distress

The aims of this research study are to examine the impact of board capital and other determinants on financial distress level of the listed banks institutions in Malaysia and this study are interested to examine the accuracy of human capital theory and knowledge transfer theory. The other determinan...

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Bibliographic Details
Main Author: Kiu, Jiet Siong.
Format: Final Year Project Report
Language:English
Published: Universiti Malaysia Sarawak (UNIMAS) 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/19817/8/The%20effect%20of%20board%20capital%20on%20Malaysian%20banking%20%28fulltext%29.pdf
http://ir.unimas.my/id/eprint/19817/
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Summary:The aims of this research study are to examine the impact of board capital and other determinants on financial distress level of the listed banks institutions in Malaysia and this study are interested to examine the accuracy of human capital theory and knowledge transfer theory. The other determinants have been used to investigate in this study such as non-performing loan (NPL), loan-to-deposit ratio (LTD), leverage, firm’s age, and firm’s age. There are eight listed commercial banking institutions in Malaysia as a sample for this study. This study used the GLS regression model as a methodology in this study. Based on the Breusch-Pagan LM test, the pooled GLS model is the most appropriate model used in this study. Based on the pooled GLS model, there are two independent variables such as board capital and leverage have a significant relationship with the dependent variable of financial distress level, while there are four independent variables such as NPL, LTD, leverage, the firm’s size, and firm’s age do not have a significant relationship with financial distress level.