Lam Weng Hoe

Investigation on the Efficiency of Financial Companies in Malaysia with Data Envelopment Analysis Model

Financial ratio and risk are important financial indicators to evaluate the financial performance or efficiency of the companies. Therefore, financial ratio and risk factor are needed to be taken into consideration to evaluate the efficiency of the companies with Data Envelopment Analysis (DEA) model. In DEA model, the efficiency of the company is measured as the ratio of sum-weighted outputs to sum-weighted inputs. The objective of this paper is to propose a DEA model by incorporating the financial ratio and risk factor in evaluating and comparing the efficiency of the financial companies in Malaysia. In this study, the listed financial companies in Malaysia from year 2004 until 2015 are investigated. The results of this study show that AFFIN, ALLIANZ, APEX, BURSA, HLCAP, HLFG, INSAS, LPI, MNRB, OSK, PBBANK, RCECAP and TA are ranked as efficient companies. This implies that these efficient companies have utilized their resources or inputs optimally to generate the maximum outputs. This study is significant because it helps to identify the efficient financial companies as well as determine the optimal input and output weights in maximizing the efficiency of financial companies in Malaysia.

Data Driven Decision Analysis in Bank Financial Management with Goal Programming Model

Financial management is important to the companies such as banks and financial institutions in managing the assets and liabilities. In optimizing the financial management, different goals have to be achieved simultaneously such as asset accumulation, liability reduction, equity, earning, profitability and total goal achievement. Therefore, goal programming model is introduced to solve the multiple objectives decision making problem in financial management. The objective of this study is to develop a goal programming model to optimize and compare the financial management of the banks in Malaysia based on the benchmark target value for each goal. In this study, six goals such as total assets, total liability, equity, profitability, earnings and total goal achievements are investigated for the period from year 2012 until 2016. The results of this study show that all banks are able to achieve the goal for total asset and equity. Moreover, the target value of equity can be increased further for all banks in future. This study is significant because it helps to determine the potential improvement on total liability, profit, earnings and total goal achievement for each bank in order to achieve the benchmark target value for future development.

Improvement on the Efficiency of Technology Companies in Malaysia with Data Envelopment Analysis Model

Efficiency evaluation is vital as it is able to determine the financial performance of the companies. Efficiency describes how well the companies in utilizing their inputs to generate outputs. The objective of this study is to propose a financial ratio based Data Envelopment Analysis (DEA) model to evaluate and compare the efficiency of listed technology companies in Malaysia for the period of 2011–2015. In DEA model, the efficiency is defined as the ratio of sum-weighted outputs to sum-weighted inputs. In this study, LINGO software is used to solve the DEA model. The results of this study indicate that ELSOFT, GTRONIC, KESM, MPI and VITROX are ranked as efficient technology companies in Malaysia. Besides that, the potential improvement for each inefficient company can be identified based on the benchmark efficient companies. This study is significant because it helps to identify the efficient technology companies which can serve as benchmarks to other inefficient companies for further improvement. Moreover, it is a pioneer study of proposing DEA model with financial ratio to evaluate and compare the efficiency of technology companies in Malaysia.

Data Analysis on the Performance of Technology Sector in Malaysia with Entropy-TOPSIS Model

Technology sector plays an important role in a country since the development of the technology can affect the reputation of the country. The financial performance of the technology companies is important because they represent the overall performance of technology sector in Malaysia. The objective of this study is to propose a conceptual framework to evaluate, rank and compare the financial performance of the companies from the technology sector based in Malaysia using Entropy-Technique for Order of Preference by Similarity to Ideal Solution model. The data analysis on the performance of the companies is assessed by current ratio, debt to assets ratio, debt to equity ratio, earnings per share, return on asset and return on equity. The results of this study show that MPI, GTRONIC, KESM and ECS are ranked as the top four technology companies in Malaysia. This study is significant because it helps to determine the financial performance of the companies from the technology sector in Malaysia with the proposed conceptual framework based on entropy-TOPSIS model.

An Empirical Study on the Preference of Supermarkets with Analytic Hierarchy Process Model

Large-scale retailers are very important to the consumers in this fast-paced world. Selection of desirable market to purchase products and services becomes major concern among consumers in their daily life due to vast choices available. Therefore, the objective of this paper is to determine the most preferred supermarket among AEON, Jaya Grocer, Tesco, Giant and Econsave by the undergraduate students in Malaysia with Analytic Hierarchy Process (AHP) model. Besides that, this study also aims to determine the priority of decision criteria in the selection of supermarkets among the undergraduatestudents with AHP model. The decision criteria employed in this study are product quality, competitive price, cleanliness, product variety, location, good price labelling, fast checkout and employee courtesy. The results of this study show that AEON is the most preferred supermarket followed by Jaya Grocer, Tesco, Econsave and Giant among the students based on AHP model. Product quality, cleanliness and competitive price are ranked as the top three influential factors in this study. This study is significant because it helps to determine the most preferred supermarket as well as the most influential decision criteria in the preference of supermarkets among the undergraduate students with AHP model.

Evaluation on the efficiency of the construction sector companies in Malaysia with data envelopment analysis model

In Malaysia, construction sector is essential parts in driving the development of the Malaysian economy. Construction industry is an economic investment and its relationship with economic development is well posited. However, the evaluation on the efficiency of the construction sectors companies listed in Kuala Lumpur Stock Exchange (KLSE) with Data Analysis Envelopment (DEA) model have not been actively studied by the past researchers. Hence the purpose of this study is to examine the financial performance the listed construction sectors companies in Malaysia in the year of 2015. The results of this study show that the efficiency of construction sectors companies can be obtained by using DEA model through ratio analysis which defined as the ratio of total outputs to total inputs. This study is significant because the inefficient companies are identified for potential improvement.

A new enhanced index tracking model in portfolio optimization with sum weighted approach

Index tracking is a portfolio management which aims to construct the optimal portfolio to achieve similar return with the benchmark index return at minimum tracking error without purchasing all the stocks that make up the index. Enhanced index tracking is an improved portfolio management which aims to generate higher portfolio return than the benchmark index return besides minimizing the tracking error. The objective of this paper is to propose a new enhanced index tracking model with sum weighted approach to improve the existing index tracking model for tracking the benchmark Technology Index in Malaysia. The optimal portfolio composition and performance of both models are determined and compared in terms of portfolio mean return, tracking error and information ratio. The results of this study show that the optimal portfolio of the proposed model is able to generate higher mean return than the benchmark index at minimum tracking error. Besides that, the proposed model is able to outperform the existing m...

Portfolio optimization with mean-variance model

Investors wish to achieve the target rate of return at the minimum level of risk in their investment. Portfolio optimization is an investment strategy that can be used to minimize the portfolio risk and can achieve the target rate of return. The mean-variance model has been proposed in portfolio optimization. The mean-variance model is an optimization model that aims to minimize the portfolio risk which is the portfolio variance. The objective of this study is to construct the optimal portfolio using the mean-variance model. The data of this study consists of weekly returns of 20 component stocks of FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI). The results of this study show that the portfolio composition of the stocks is different. Moreover, investors can get the return at minimum level of risk with the constructed optimal mean-variance portfolio.