Firm Risk and Performance: The Role of Corporate Governance in Hwa Tai Sdn Bhd

Khalil, Nur Syafiqah (2017): Firm Risk and Performance: The Role of Corporate Governance in Hwa Tai Sdn Bhd.

Abstract

The main purpose of this study is to examine the relation between the overall performance of Hwa Tai Sdn Bhd with firm specific risk and some macroeconomics factor involved. The data collected are from Hwa Tai Sdn Bhd’s annual report starting from 2011 until 2015. The calculation of liquidity ratio, profitability ratio and operating ratio are used to see the overall performance of Hwa Tai Sdn Bhd. A correlation model comprise of dependent variable which is ROA and numerous independent variable was used to analyse the performance of Hwa Tai Sdn Bhd. This study empirical results showed that ROI is the most significant meaning in the performance of Hwa Tai Sdn Bhd.

• Item Type: MPRA Paper
• Language: English
• Keywords: firm specific risk; macroeconomics factor; liquidity ratio; profitability ratio; operating ratio; ROA; ROI
• Subjects: G - Financial Economics > G0 - General; G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G0 - General > G02 - Behavioral Finance: Underlying Principles; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation

References

Alman, M. (2012). shari'ah supervisory board composition effects on Islamic banks'' risk-taking behavior. Journal of Banking Regulation, 134-163.

Bhatti, M., & Bhatti, M. (2010). Toward understanding Islamic corporate governance issues in Islamic finance. Asian Politics and Policy 2, 25-38.

Castro, V. (2013). Macroeconomic Determinants of the Credit Risk in the Banking System: the Case of the GIPSI, GEMF Working Papers. GEMF.

Choon, Y. T. (2012). Performance of Islamic commercial banks in Malaysia: An empirical study. Journal of Islamic Economics, Banking and Finance, 8(2), 65-79.

Coles, J., & Daniel, N. a. (2008). Boards: Does one size fit all? Journal of Financial Economics,87, 329-356.

EconomicsHelp.org. (2016). Inflation. Retrieved from Economics Help: http://www.economicshelp.org/macroeconomics/inflation/definition/

Ghazali, M. (2008). The Bank-Specific and Macroeconomic Determinants of Islamic Bank Profitability: Some International Evidence. Faculty of Business and Accountancy. University of Malaya.

Halal Exporter. (2011). Halal Exporter : Halal Business Worldwide. Retrieved from Hwa Tai Industries Berhad: http://www.halalexporter.com/listing/hwa-tai-industries-berhad.html

Harrison, S. (2012). Can You Have a Negative Return on Assets? Retrieved from ehow: http://www.ehow.com/info_12102782_can-negative-return-assets.html

Hwa Tai Industries Berhad. (2012). Company History & Business. Retrieved from Hwa Tai Industries Berhad: http://www.hwatai.com/ourcompany/live/about.html

IB Insights. (2013, November 18). Shariah Governance. Retrieved from islamicbanker: https://www.islamicbanker.com/articles/shariah-governance

InvestingAnswers. (2017). Leverage Ratio. Retrieved from InvestingAnwers: http://www.investinganswers.com/financial-dictionary/debt-bankruptcy/leverage-ratio-5287

InvestingAnswers. (2017). Return on Equity (ROE). Retrieved from Investing Answers: http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/return-equity-roe-916

investopedia. (2014). liquidity ratio. Retrieved from investopedia: http://www.investopedia.com/terms/l/liquidityratios.asp

investopedia. (2017). board of directors - B Of D. Retrieved from investopedia: http://www.investopedia.com/terms/e/executive-director.asp

Jensen, M. (1993). The modern industrial revolution, exit, and the failure of internal control systems. Journal of Finance, 48, 831-880.

Kosmidou, K., & Pasiouras, F. (2005). The Determinants of Profits and Margins in the Greek Commercial Banking Industry: Evidence from the Period 1990-2002. Financial Engineering Laboratory, Department of Production Engineering and Management, Technical University of Crete Working Paper.

Lipton, M., & Lorsch, J. (1992). A modest proposal for improved corporate governance. Business Lawyer,48, 59-77. Margaret Rouse. (2007). ROI (return on investment). Retrieved from techtarget: http://searchcio.techtarget.com/definition/ROI

Mkukwana, K. (2013). The impact of macroeconomics factors on the risk of default: the case of residential mortgages. (Doctoral Dissertattion).

Moskowitz, H. (1952). Portfolio Selection. Journal of Finance, 7, 77-91.

Shu, C. (2002). The impact of macroeconomic environment on the asset quality of Hong Kong's banking sector. Hong Kong Monetary Authority Research Memorandum, 20.

Waemustafa, W., & Abdullah, A. (2015). Mode of Islamic Bank Financing: Does Effectiveness of Shariah Supervisory Board Matter?. Australian Journal of Basic and Applied Sciences 9 (37), 458-463

Waemustafa, W., & Sukri, S. (2016). Systematic and Unsystematic Risk Determinant 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)

WebFinance. (2017). liquidity. Retrieved from businessdictionary: http://www.businessdictionary.com/definition/liquidity.html

Wilkinson, J. (2013, July 24). operating profit margin ratio. Retrieved from strategiccfo: https://strategiccfo.com/operating-profit-margin-ratio/

Worldwide Company Profile. (2017). Worlwide Company Profile. Retrieved from Worldwide Company Profile: https://listofcompanies.co.in/2012/01/24/hwa-tai-industries-bhd/

Zweig, J. (1988). 'Five Investing Lessons from America's Top Pension Fund.'. Money, 115-188.