Empirical Evidence of Risk and Performance: Top Glove Corporation Berhad

lim, yu zhi (2017): Empirical Evidence of Risk and Performance: Top Glove Corporation Berhad.

Abstract

The purpose of this study is desired to examine the profitability performance of Top Glove Corporation Berhad with some risk factors (liquidity risk, operating risk) and macroeconomic factors. This study was according to the annual report data of Top Glove from year 2011 to year 2015. It shows that there are negative relationship between the company’s profitability and the operating ratio. By using the IBM SPSS Statistics software and add some measurement such as GDP, inflation rate, asset size to get more accurate statistics. After the calculation, profitability performance of top Glove has an insignificant negative correlation relationship with liquidity ratio, operating ratio, leverage and GDP. There are only one factor shows inflation is significant to the profitability of the company.

• Item Type: MPRA Paper
• Language: English
• Keywords: Profitability, Credit Risk, Liquidity, Performance and Macroeconomic
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G3 - Corporate Finance and Governance

References

REFERENCES

Brown, K., & Moles, P. (2012). Credit risk management. Edinburgh Business School, Heriot-Watt University, UK.

Goodhart, C. (2008). Liquidity risk management. Banque de France Financial Stability Review, 11, 39-44.

Moosa, I. (2007). Operational risk management. Springer.

Power, M. (2004). The risk management of everything. The Journal of Risk Finance, 5(3), 58-65.

Saleem, Q., & Rehman, R. U. (2011). Impacts of liquidity ratios on profitability. Interdisciplinary Journal of Research in Business, 1(7), 95-98.

Waemustafa, W., & Abdullah, A. (2015). Mode of Islamic Bank Financing: Does Effectiveness of Shariah Supervisory Board Matter?

13

Waemustafa, W., & Sukri, S. (2016). Systematic and Unsystematic Risk Determinants of Liquidity Risk Between Islamic and Conventional Banks. International Journal of Economics and Financial Issues, 6(4).

Waemustafa, W., & Sukri, S. (2015). Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks. International Journal of Economics and Financial Issues, 5(2).