Janice Yim Mei Lee

Estimating the tourism-led growth hypothesis: a case study of the Middle East countries

The study examines tourism-led growth hypothesis in the Middle East. A panel gross domestic product (GDP) model is used taking the period of 1985–2012. The results from the Pedroni cointegration test indicated that tourism receipt (TR) is cointegrated with GDP growth (GDP). The dynamic ordinary least-squares test results revealed that TR has a positive long-run effect on GDP in the investigated countries. Moreover, the results from the Granger causality test showed that TR has a positive causal relationship with GDP. Moreover, the results also concluded that the increase in GDP, total trade, and the depreciation of the local currency are essential to promote tourism expansion. From the results, a number of recommendations were provided to increase the tourism expansion of the examined countries.

Dynamic Relationship between House Prices in Malaysia's Major Economic Regions and Singapore House Prices

Fereidouni H. G., Al-Mulali U., Lee J. Y. M. and Mohammed A. H. Dynamic relationship between house prices in Malaysias major economic regions and Singapore house prices, Regional Studies. The purpose of this study is to examine house price diffusion among Malaysias major economic regions (Kuala Lumpur, Selangor, Pulau Pinang and Johor) and between each of these regions and neighbouring Singapore by using the quarterly data from 2000:Q1 to 2011:Q1. By applying multivariate co-integration approach, the results show the existence of ripple effects among Malaysias major economic regions. Moreover, it is found that house price diffusion observed within a country can be extended across the border. Implications are offered along with the findings of this research.

Agriculture investment, output growth and CO2 emissions relationship

ABSTRACT The purpose of this study is to examine the dynamic relationships between foreign investments in agriculture, domestic investments in agriculture, agricultural output, and greenhouse gases emissions from agriculture for a panel of countries over the period of 1990–2007. The panel cointegration and panel causality tests are applied in this study. The results show that there is a long-run causal relationship among all variables. The short-run dynamics suggest that there is a bidirectional causality relationship between agricultural output and greenhouse gases emissions from agriculture while there is no causal relationship between foreign investments in agriculture and domestic investments in agriculture as well as foreign investments in agriculture and greenhouse gases emissions from agriculture. It is also found that there is unidirectional short-run causal relationship from agricultural output to domestic investments in agriculture. The results provide some important implications for policy-makers.

Apartment foreclosure discount in Kuala Lumpur

With the exception of anecdotal information which suggests that auctioned or foreclosed properties in Malaysia tend to be sold at a deep discount, no study has thus far attempted to quantify this foreclosure discount. This notion is explored by comparing the listing price of auctioned apartments with comparable non-auctioned apartments located within the same building blocks in Kuala Lumpur during the period 2009–2014. The property auction market is predominately relied upon to dispose of foreclosed properties in Malaysia. It is found that foreclosed apartments are listed at a discount of 33.4% as compared to apartments advertised in the private negotiated market. This discount is attributed to “stigma effect” associated with auctioned properties and the imperfections of the Malaysian auction market such as auctioned properties may not carry a clean title, potential buyers cannot view the properties prior to auction and may not obtain vacant possession of the properties. The “proxy effect” was minimal since the matching strategy adopted would have netted out the differentials in locational and neighbourhood characteristics between auctioned and non-auctioned properties.

Asset divestitures and corporate operational returns: an agency theory perspective on Malaysian public-listed companies

Divestitures of property, plant and equipment (PPE) assets are a common form of corporate restructuring. However, divesting companies do not necessarily attain improved post-divestiture shareholder wealth. Studies show company characteristics and use of divestiture proceeds may influence divestiture outcomes. This paper attempts to determine these divesting company characteristics and use of proceeds associated with improved shareholder wealth based on the Agency Theory. A sample of Malaysian public-listed companies that divested assets within 2002--2005 is used. Logistic regression segregates these companies based on their industry-adjusted operational returns. Companies that improve post-divestiture operational performance require urgent pay out motives to divest. Companies with deteriorated post-divestiture performance divest without urgent pay out motive and tend to retain proceeds. This suggests agency problem of managerial discretion in asset divestitures. In asset selection, divestitures of larger and more inefficient assets were found associated with improved company performance. Malaysian companies prefer divesting assets related to their core businesses indicating a diversified company structure is more beneficial than a focused structure in developing countries.

Seller ethnicity and property characteristics: foreclosure sales in Malaysia

Purpose - The purpose of this paper is to examine the determinants of property sale probability and sale price at auction in Kuala Lumpur, Malaysia. Design/methodology/approach - A two-stage Heckman sample selection model is used for this research. The first stage involves the estimation of a probit model on a successful sale. The second stage introduces an additional selection variable, the inverse Mills ratio, as an explanatory variable to the sale price estimation equation. Findings - The authors find that Chinese-owned auctioned properties have higher sale probability and are sold at higher prices as compared to Indian and Malay-auctioned properties. Properties auctioned by the largest auction house outperformed other smaller auctioneers. Auction characteristics such as proximity to the city center, number of previous auction attempts and number of online viewers are positively related to sale price and sale probability. Social implications - The findings on the substantially lower sale price obtained by Malay and Indian borrowers compared to their Chinese counterparts imply that it is much harder for these borrowers to be relieved from financial distress. The two plausible explanations offered in this paper for this price differential, i.e. racial residential segregation and ownership restriction, warrant further study. Originality/value - First, the authors consider the explanatory power of seller ethnicity, number of online viewers and auctioning route which are new to the literature. Second, they use a Heckman model that addresses possible selection bias of sold properties. This methodology is unexplored in the auction literature.