Amrizah Kamaluddin

Social Collateral, Repayment Rates, and the Creation of Capital Among the Clients of Microfinance☆

Abstract The present paper seeks to examine the social collateral model for Malaysia Microfinance Institutions (MFI). This study proposes the social collateral model consists of social capital (trust and network), group pressure and training is used as supporting mechanism to encourage loan repayments and support the borrowers in creating human capital and economic capital. The social collateral model offers guidelines to the MFI in distributing the microfinance loan to the borrowers effectively and assesses the ability of the borrowers in the loan repayments. This would ensure survival of the borrowers in the microfinance program and lead to enhancement of their social and economic growth or lives. A vital social collateral model would contribute to the MFI in term of financial and managerial sustainability of MFI in the microfinance industry.

Social Collateral Model for Islamic Microfinance

This study examines the social collateral model for Islamic microfinance in Malaysia. Using qualitative instruments on academics and officers of microfinance institutions as the sample study, this study identifies the components that should be included in the social collateral model for Islamic microfinance. Based on interviews and focus group discussions, this study found that similar to the conventional microfinance, the Islamic microfinance also include social capital, group pressure, entrepreneurship skills, and culture as the components of social collateral model. In addition, this study found that religiosity represents another important component of the social collateral model for Islamic microfinance.

Monitoring mechanisms and financial distress of public listed companies in Malaysia

This study examines the relationships between financial distress and financial ratio (liquidity, leverage, profitability, firm’s performance, and dividend) among public listed companies, using the Altman Z-Score to determine the financial distress levels among public listed companies in Malaysia. Five-year data has been collected (2010 to 2014) from the annual financial statements and from Data Stream of public listed companies in Malaysia. The findings indicate significant relationships between liquidity, leverage, profitability, firm’s performance, and dividend with the financial distress levels among the companies in question. This study also examines the interaction effects of financial ratios and the year after implementation of the Malaysian Code on Received: November, 2016 1st Revision: February, 2017 Accepted: April, 2017 DOI: 10.14254/20718330.2017/10-1/6 Journal of International Studies S ci en ti fi c P a pe rs

Board Structure and Earnings Management in Malaysian Government Linked Companies

Abstract With increasing number of corporate scandals and failures, corporate governance has become a common and controversial issue last few decades specifically on the role of board of directors in enhancing the performance of firms and mitigating earnings management activities. Numerous research have investigated the relationship between earnings management and board structure in Public Listed Companies (PLCs), but limited study has focused on Government Linked Companies (GLCs). The current study examines relationship between corporate governance mechanism being board structure and earnings management. This study used a sample of 26 Malaysian listed GLCs from various industries excluding the finance industry. Data were collected from the annual report for a period of six years from year 2005 until 2010. Multiple regression analysis was used to test the hypotheses. The results provide significant support on the association between boards of directors’ composition towards earnings management.

Monitoring Distressed Companies through Cash Flow Analysis

Abstract The purpose of this paper is to examine the importance of cash flow ratios in determining financial distress companies. Using a logistic regression, this paper analyses the data of 52 distressed and 52 non-distressed companies for three years prior to distress years between 2009 until 2012. The results found that five cash flow ratios are significant predictors of financial distress with the overall predictive accuracy of 82.1 percent. This suggests that cash flow ratios are reliable tools to predict financial distress for Malaysian context.

Impending Bankruptcy: Examining Cash Flow Pattern of Distress and Healthy Firms

Abstract Studies have proven that information on earnings has become less relevant to measure company performance during distressed situation. A relatively simple and convenient way to analyze a companys financial status is by using cash flow information. The present study examines eight types of cash flow patterns used as an alternative tool to predict financial distress incidence. The cash flow patterns derived from positive and negative signs of cash flow components which consist of operating, investing and financing activities. The data collected consists of 124 Malaysian public listed companies covering the period of 2006 until 2013. The main objective of the study is to find out whether there is any significant relationship between cash flow patterns and financial distress incidence. The results found that companies are more likely to experience financial distress situation when the company generates positive cash inflow from daily operation activities and use the cash generated to finance future investment and long term debt. Besides, the companies are also more likely in distressed situation when they are unable to cover its short term obligation due to insufficient cash inflows generated from the main operating activities. Distressed companies are more likely to acquire external financing since the excess of cash generated from operating activities is insufficient. When the company experienced outflows in all operating, investing and financing activities, there is high tendency for the company to go bankrupt. The results also revealed that there is a significant difference between distressed and healthy companies in incidence of different patterns of cash flow.