Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer

Financial fragility is a priority topic for many policymakers, practitioners, and researchers due to its impact on the economy. Financial fragility is also termed as financial instability leading to financial crisis. Most of the researcher believed that the increase in financial fragility is caused...

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Main Author:	Muzzawer, Nurziya
Format:	Thesis
Language:	English
Published:	2018
Subjects:	Macroeconomics
Online Access:	https://ir.uitm.edu.my/id/eprint/84290/1/84290.pdf
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id	my-uitm-ir.84290
record_format	uketd_dc
spelling	my-uitm-ir.842902024-03-18T00:56:23Z Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer 2018 Muzzawer, Nurziya Macroeconomics Financial fragility is a priority topic for many policymakers, practitioners, and researchers due to its impact on the economy. Financial fragility is also termed as financial instability leading to financial crisis. Most of the researcher believed that the increase in financial fragility is caused by the vulnerability in banking sector. Besides, majority of previous studies were only concentrated in firm level data; and only a few researchers took into consideration the influence of macroeconomic variables to corporate failures. Similarly, in Malaysia not many studies have paid attention on using macroeconomic variables as explanatory variables for corporate financial fragility. Therefore, the purpose of this study is to fill gap by examining the relationship between macroeconomic variables and corporate financial fragility in Malaysia. Corporate financial fragility is measured by corporate failure rate. Meanwhile, macroeconomic variables consist of gross domestic product (GDP), inflation rate (consumer price index), interest rate (average lending rate), unemployment rate, birth of new company, corporate profits and real wages. The data set was taken from years 1998 to 2015 on a quarterly basis. By employing Autoregressive Distributed Lag (ARDL) bounds approach, the analysis found that there is a significant long-run and short-run relationship between macroeconomics and corporate financial fragility in Malaysia. Interestingly, before GFC 2008 found that most of the macroeconomic have significant long-run and short-run relationship with corporate financial fragility. However, after Global Financial Crisis 2008 revealed that most of macroeconomics found does not have long-run relationship, still, there is a significant short-run relationship. As a conclusion, based on the whole period of study found that birth of new companies and real wages have a positive long-run relationship, while interest rate has a negative short-run relationship and real wages has mixed short-run relationship with corporate failure rate in Malaysia. 2018 Thesis https://ir.uitm.edu.my/id/eprint/84290/ https://ir.uitm.edu.my/id/eprint/84290/1/84290.pdf text en public masters Universiti Teknologi MARA (UiTM) Faculty of Business Management Bujang, Imbarine
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Bujang, Imbarine
topic	Macroeconomics
spellingShingle	Macroeconomics Muzzawer, Nurziya Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer
description	Financial fragility is a priority topic for many policymakers, practitioners, and researchers due to its impact on the economy. Financial fragility is also termed as financial instability leading to financial crisis. Most of the researcher believed that the increase in financial fragility is caused by the vulnerability in banking sector. Besides, majority of previous studies were only concentrated in firm level data; and only a few researchers took into consideration the influence of macroeconomic variables to corporate failures. Similarly, in Malaysia not many studies have paid attention on using macroeconomic variables as explanatory variables for corporate financial fragility. Therefore, the purpose of this study is to fill gap by examining the relationship between macroeconomic variables and corporate financial fragility in Malaysia. Corporate financial fragility is measured by corporate failure rate. Meanwhile, macroeconomic variables consist of gross domestic product (GDP), inflation rate (consumer price index), interest rate (average lending rate), unemployment rate, birth of new company, corporate profits and real wages. The data set was taken from years 1998 to 2015 on a quarterly basis. By employing Autoregressive Distributed Lag (ARDL) bounds approach, the analysis found that there is a significant long-run and short-run relationship between macroeconomics and corporate financial fragility in Malaysia. Interestingly, before GFC 2008 found that most of the macroeconomic have significant long-run and short-run relationship with corporate financial fragility. However, after Global Financial Crisis 2008 revealed that most of macroeconomics found does not have long-run relationship, still, there is a significant short-run relationship. As a conclusion, based on the whole period of study found that birth of new companies and real wages have a positive long-run relationship, while interest rate has a negative short-run relationship and real wages has mixed short-run relationship with corporate failure rate in Malaysia.
format	Thesis
qualification_level	Master's degree
author	Muzzawer, Nurziya
author_facet	Muzzawer, Nurziya
author_sort	Muzzawer, Nurziya
title	Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer
title_short	Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer
title_full	Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer
title_fullStr	Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer
title_full_unstemmed	Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer
title_sort	macroeconomic factors and corporate financial fragility in malaysia / nurziya muzzawer
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Business Management
publishDate	2018
url	https://ir.uitm.edu.my/id/eprint/84290/1/84290.pdf
_version_	1794191990825418752

Macroeconomic factors and corporate financial fragility in Malaysia / Nurziya Muzzawer

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