The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks

Cash flow is the movement of cash, which is a medium of the transactions in carrying out the banks’ operating, investing, and financing activities. At managing the cash flow, instead of the Indonesians, Malaysian commercial banks showed an average lower Capital Adequacy Ratio but operationally exhib...

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Main Author: Samryn, La Madjid
Format: Thesis
Language:English
Published: 2019
Subjects:
Online Access:http://eprints.usm.my/55740/1/full%20thesis%20by%20SAMRYN%20cut.pdf
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spelling my-usm-ep.557402022-11-24T02:15:15Z The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks 2019-09 Samryn, La Madjid LC5800-5808 Distance education. Cash flow is the movement of cash, which is a medium of the transactions in carrying out the banks’ operating, investing, and financing activities. At managing the cash flow, instead of the Indonesians, Malaysian commercial banks showed an average lower Capital Adequacy Ratio but operationally exhibited better capability in business expansion. This study aims to measure the significance of differences in the impacts of Cash Flows on Capital Adequacy Ratio between the commercial banks in the two countries. For the comparisons, this study uses the secondary data of Cash Flows and Capital Adequacy Ratio from 2009 to 2013 of the big five banks of the countries. Application of Chow statistics on avail data showed that the Cash Flow from Investing Activities of the two countries shows the different impact on Capital Adequacy Ratio. Cash Flow from Investing Activities is the most influencing cash flow on the Capital Adequacy Ratio. Accordingly, these findings reinforce the implication that Malaysian commercial banks are more stable and reliable due to the well-managed investment as a source of cash flow and capitalized income. Hence, this study recommends the Malaysian banking authority to sponsor the establishment of a banking restructuring institution for ASEAN countries. To the Indonesian banking authority, this study recommends the improvement of investing activities and merge the small commercial banks to enforce the banks’ capital strengthening. 2019-09 Thesis http://eprints.usm.my/55740/ http://eprints.usm.my/55740/1/full%20thesis%20by%20SAMRYN%20cut.pdf application/pdf en public phd doctoral Universiti Sains Malaysia Pusat Pengajian Pendidikan Jarak Jauh
institution Universiti Sains Malaysia
collection USM Institutional Repository
language English
topic LC5800-5808 Distance education.
spellingShingle LC5800-5808 Distance education.
Samryn, La Madjid
The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks
description Cash flow is the movement of cash, which is a medium of the transactions in carrying out the banks’ operating, investing, and financing activities. At managing the cash flow, instead of the Indonesians, Malaysian commercial banks showed an average lower Capital Adequacy Ratio but operationally exhibited better capability in business expansion. This study aims to measure the significance of differences in the impacts of Cash Flows on Capital Adequacy Ratio between the commercial banks in the two countries. For the comparisons, this study uses the secondary data of Cash Flows and Capital Adequacy Ratio from 2009 to 2013 of the big five banks of the countries. Application of Chow statistics on avail data showed that the Cash Flow from Investing Activities of the two countries shows the different impact on Capital Adequacy Ratio. Cash Flow from Investing Activities is the most influencing cash flow on the Capital Adequacy Ratio. Accordingly, these findings reinforce the implication that Malaysian commercial banks are more stable and reliable due to the well-managed investment as a source of cash flow and capitalized income. Hence, this study recommends the Malaysian banking authority to sponsor the establishment of a banking restructuring institution for ASEAN countries. To the Indonesian banking authority, this study recommends the improvement of investing activities and merge the small commercial banks to enforce the banks’ capital strengthening.
format Thesis
qualification_name Doctor of Philosophy (PhD.)
qualification_level Doctorate
author Samryn, La Madjid
author_facet Samryn, La Madjid
author_sort Samryn, La Madjid
title The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks
title_short The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks
title_full The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks
title_fullStr The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks
title_full_unstemmed The Impact Of Cash Flows On Capital Adequacy Ratio: A Comparative Study Of Indonesian And Malaysian Commercial Banks
title_sort impact of cash flows on capital adequacy ratio: a comparative study of indonesian and malaysian commercial banks
granting_institution Universiti Sains Malaysia
granting_department Pusat Pengajian Pendidikan Jarak Jauh
publishDate 2019
url http://eprints.usm.my/55740/1/full%20thesis%20by%20SAMRYN%20cut.pdf
_version_ 1776101111097196544