Pub Date : 2024-07-15DOI: 10.32890/ijbf2024.19.2.1
Eric Wen Ming Yoong, Wee-Yeap Lau
This study aims to determine the impact of the COVID-19 pandemic and government responses on the Malaysian stock market. Usingthe Kuala Lumpur Composite Index (KLCI) from 1st March 2020 to 31st December 2020, the study discovered several findings. First, thenumber of daily new COVID-19 cases affected the index. Nevertheless, the new cases turned out to be positive at a later stage. This finding inferred that investors grew apathetic towards COVID-19 over the long run. Second, daily new COVID-19 deaths negatively impacted the stock index. Third, the Movement Control Order (MCO) harmfully influenced the index. Fourth, the Recovery Movement Control Order RMCO and most government stimulus packages positively impacted the index. In conclusion, the government’s responses to COVID-19 have managed to mitigate several negative impacts of the pandemic on the stock market. The stimulus packages provided the much-needed impetus for market recovery during the pandemic.
{"title":"COVID-19 AND GOVERNMENT RESPONSES: HAS THE PANDEMIC AFFECTED THE KUALA LUMPUR COMPOSITE INDEX?","authors":"Eric Wen Ming Yoong, Wee-Yeap Lau","doi":"10.32890/ijbf2024.19.2.1","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.2.1","url":null,"abstract":"This study aims to determine the impact of the COVID-19 pandemic and government responses on the Malaysian stock market. Usingthe Kuala Lumpur Composite Index (KLCI) from 1st March 2020 to 31st December 2020, the study discovered several findings. First, thenumber of daily new COVID-19 cases affected the index. Nevertheless, the new cases turned out to be positive at a later stage. This finding inferred that investors grew apathetic towards COVID-19 over the long run. Second, daily new COVID-19 deaths negatively impacted the stock index. Third, the Movement Control Order (MCO) harmfully influenced the index. Fourth, the Recovery Movement Control Order RMCO and most government stimulus packages positively impacted the index. In conclusion, the government’s responses to COVID-19 have managed to mitigate several negative impacts of the pandemic on the stock market. The stimulus packages provided the much-needed impetus for market recovery during the pandemic.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"56 38","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141644312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-15DOI: 10.32890/ijbf2024.19.2.4
Wahidah Shari, Mohamad Hanif Abu Hassan
This study examined the determinants of the long-term performance of 351 initial public offerings (IPOs) launched in Malaysia overthe 2002–2010 period. This paper used a panel regression analysis framework based on the ordinary least squares (OLS) technique toexamine the potential determinants of IPOs’ long-term performance. The findings revealed that the volatility of aftermarket returns, the dummy ACE market and concentration ownership significantly influence the long-term performance of Malaysian IPOs. This paperoffers important implications specifically for investors as the findings can help them understand more about public companies’ long-term performance and how to better predict their performance.
{"title":"DETERMINANTS OF THE LONG-TERM PERFORMANCE OF MALAYSIAN INITIAL PUBLIC OFFERINGS","authors":"Wahidah Shari, Mohamad Hanif Abu Hassan","doi":"10.32890/ijbf2024.19.2.4","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.2.4","url":null,"abstract":"This study examined the determinants of the long-term performance of 351 initial public offerings (IPOs) launched in Malaysia overthe 2002–2010 period. This paper used a panel regression analysis framework based on the ordinary least squares (OLS) technique toexamine the potential determinants of IPOs’ long-term performance. The findings revealed that the volatility of aftermarket returns, the dummy ACE market and concentration ownership significantly influence the long-term performance of Malaysian IPOs. This paperoffers important implications specifically for investors as the findings can help them understand more about public companies’ long-term performance and how to better predict their performance. ","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"8 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141646022","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-15DOI: 10.32890/ijbf2024.19.2.5
Sutina Mahmod, Norhazlina Ibrahim, Suhaila Abdul Hamid
Paying zakat and disclosing it transparently to stakeholders is one of the ways to demonstrate the Islamic ethical value and accountability of Islamic finance institutions (IFIs). Nevertheless, comprehensive zakat information disclosure practices by Islamic banks (IBs) and Development Financial Institutions (DFIs) have received less attention. Therefore, this study was conducted to develop a comprehensive Zakat Disclosure Index (ZDI) for IBs and DFIs and measure the ZDI level of these institutions. Content analysis was performed through financial statements, annual reports, annual integrated reports and annual sustainability reports for four consecutive financial years from 2016 to 2019. The entire population of 16 IBs and 6 DFIs was selected. The ZDI was developed with two categories based on the liability of paying zakat. The scoring was divided into three groups: (i) mandatory financial information versus voluntary financial information versus mandatory non-financial information versus voluntary non-financial information; (ii) mandatory versus voluntary; and (iii) financial versus non-financial. The result showed that the overall disclosure level was at 60 percent, where mandatory disclosure was at 43 percent and voluntary disclosure was at 17 percent, while for financial and non-financial information, the scores were not much different at 25 percent to 33 percent. The study’s implication lies in establishing astandardised zakat index, enhancing comparability among reporting entities. Furthermore, the study holds importance for regulators as it aids in assessing the sufficiency of existing regulations and guidelines. It can guide regulatory actions to uphold the principles of maqasid shariah in reporting practices.
{"title":"ZAKAT DISCLOSURE INDEX BY ISLAMIC BANKS AND DEVELOPMENT FINANCIAL INSTITUTIONS IN MALAYSIA","authors":"Sutina Mahmod, Norhazlina Ibrahim, Suhaila Abdul Hamid","doi":"10.32890/ijbf2024.19.2.5","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.2.5","url":null,"abstract":"Paying zakat and disclosing it transparently to stakeholders is one of the ways to demonstrate the Islamic ethical value and accountability of Islamic finance institutions (IFIs). Nevertheless, comprehensive zakat information disclosure practices by Islamic banks (IBs) and Development Financial Institutions (DFIs) have received less attention. Therefore, this study was conducted to develop a comprehensive Zakat Disclosure Index (ZDI) for IBs and DFIs and measure the ZDI level of these institutions. Content analysis was performed through financial statements, annual reports, annual integrated reports and annual sustainability reports for four consecutive financial years from 2016 to 2019. The entire population of 16 IBs and 6 DFIs was selected. The ZDI was developed with two categories based on the liability of paying zakat. The scoring was divided into three groups: (i) mandatory financial information versus voluntary financial information versus mandatory non-financial information versus voluntary non-financial information; (ii) mandatory versus voluntary; and (iii) financial versus non-financial. The result showed that the overall disclosure level was at 60 percent, where mandatory disclosure was at 43 percent and voluntary disclosure was at 17 percent, while for financial and non-financial information, the scores were not much different at 25 percent to 33 percent. The study’s implication lies in establishing astandardised zakat index, enhancing comparability among reporting entities. Furthermore, the study holds importance for regulators as it aids in assessing the sufficiency of existing regulations and guidelines. It can guide regulatory actions to uphold the principles of maqasid shariah in reporting practices. ","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"28 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141648008","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-15DOI: 10.32890/ijbf2024.19.2.2
Hossain Mohammad Shahriar
Firms’ decisions are not independent of their peers. This study aims to assess the impact of peer pressure on firms’ dividend policy. In a sample of 29 firms from 2014–2020, this study employed a fixed effect regression model and revealed that Bangladeshi firms adjusted their dividend policy in response to their peers. Firms adjust the dividend payout ratio (DPR) by 5.6 percent as a response to their peers. Social learning theory, reputation-based model of peer influence, persuasion bias and rivalry-based theory of mimicking explain how peer influence affects a firm’s dividend policy. The findings of positive peer effects on dividend policy are robust to an alternative proxy of dividend policy – dividend yield. Therefore, the study implied that managers’ decisions regarding the dividend policy are not independent of their peer firms. Investors can adjust their expectations of a firm’s dividend policy based on the overall dividend policy in the industry.
{"title":"IMPACT OF PEER PRESSURE ON DIVIDEND POLICY: EVIDENCE FROM FOOD & ALLIED AND POWER & FUEL SECTORS IN BANGLADESH","authors":"Hossain Mohammad Shahriar","doi":"10.32890/ijbf2024.19.2.2","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.2.2","url":null,"abstract":"Firms’ decisions are not independent of their peers. This study aims to assess the impact of peer pressure on firms’ dividend policy. In a sample of 29 firms from 2014–2020, this study employed a fixed effect regression model and revealed that Bangladeshi firms adjusted their dividend policy in response to their peers. Firms adjust the dividend payout ratio (DPR) by 5.6 percent as a response to their peers. Social learning theory, reputation-based model of peer influence, persuasion bias and rivalry-based theory of mimicking explain how peer influence affects a firm’s dividend policy. The findings of positive peer effects on dividend policy are robust to an alternative proxy of dividend policy – dividend yield. Therefore, the study implied that managers’ decisions regarding the dividend policy are not independent of their peer firms. Investors can adjust their expectations of a firm’s dividend policy based on the overall dividend policy in the industry. ","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"100 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141647163","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-15DOI: 10.32890/ijbf2024.19.2.3
Damilola Oyetade, P. Muzindutsi
This study investigated the stock market reaction and the effect of the implementation of Basel II and Basel III on the stock returns of South African banks. In achieving this aim, this study focused on daily and annual data of six commercial banks from 3rd January 2004 to 31st December 2022. The event study methodology was employed to identify abnormal returns around the specified event dates. The effect of the changes in Basel capital requirements on stock returns was not uniform across the four events. The market reacted favourably to the implementation of the Basel II requirements in the country. There was a significantly negative market reaction to the subsequent full implementation of Basel III official. Finally, higher Basel capital requirements (CAR) was associated with lower bank stock returns. The findings implied that bank regulators increase capital to strengthen the banking system but constrain the maximisation of shareholders’ values.
{"title":"MARKET REACTION TO THE IMPLEMENTATION OF BASEL CAPITAL IN SOUTH AFRICAN BANKS: EVENT STUDY APPROACH","authors":"Damilola Oyetade, P. Muzindutsi","doi":"10.32890/ijbf2024.19.2.3","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.2.3","url":null,"abstract":"This study investigated the stock market reaction and the effect of the implementation of Basel II and Basel III on the stock returns of South African banks. In achieving this aim, this study focused on daily and annual data of six commercial banks from 3rd January 2004 to 31st December 2022. The event study methodology was employed to identify abnormal returns around the specified event dates. The effect of the changes in Basel capital requirements on stock returns was not uniform across the four events. The market reacted favourably to the implementation of the Basel II requirements in the country. There was a significantly negative market reaction to the subsequent full implementation of Basel III official. Finally, higher Basel capital requirements (CAR) was associated with lower bank stock returns. The findings implied that bank regulators increase capital to strengthen the banking system but constrain the maximisation of shareholders’ values.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"22 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141645842","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-31DOI: 10.32890/ijbf2024.19.1.1
Abdulhakim Diko
This paper aims to determine the factors affecting cost and profit efficiency of commercial banks in Turkey and to examine theownership effect on cost and profit efficiency in an emerging market. Another aim of the study is to carry out the most recent and longitudinal (2006-2020) analysis of efficiency in the Turkish banking industry. This study uses an intermediation approach with data envelopment analysis (DEA) as its methodology. A total of 23 commercial banks were selected as the study sample and their quarterly data from 2006- 2020 was collected. In addition, an external two-stage DEA model with Tobit regression was applied to examine the determinants of cost and profit efficiency. The results show that Turkish banks currently work with relatively higher cost efficiency than profit efficiency. On the other hand, foreign banks display a lower cost and profit efficiency performance. The downward trend in profit efficiency in the Turkish banking system sends a warning signal on the health and stability of the banking sector. Multivariate Tobit regression analysis reveals how Total Assets, Deposit Share, Asset Growth, Time Deposits, NPL, and Ownership Structure significantly affect cost and profit efficiency. Ratio of liquid assets to total assets is positively correlated with the efficiency values, in contrast to results from previous studies. Previous studies have mostly been limited to scale and technical efficiency and focused on the cost efficiency of Turkish banks. In this study, the gap in the literature is filled by a comparative examination of the cost andprofit efficiency at the scale of bank ownership. The study will look at and discussed these issues at the most stable period and the pre-pandemic period in the Turkish economy.
{"title":"A DEA AND TOBIT ANALYSIS OF THE DETERMINANTS OF COST AND PROFIT EFFICIENCY IN THE TURKISH BANKING SECTOR","authors":"Abdulhakim Diko","doi":"10.32890/ijbf2024.19.1.1","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.1.1","url":null,"abstract":"This paper aims to determine the factors affecting cost and profit efficiency of commercial banks in Turkey and to examine theownership effect on cost and profit efficiency in an emerging market. Another aim of the study is to carry out the most recent and longitudinal (2006-2020) analysis of efficiency in the Turkish banking industry. This study uses an intermediation approach with data envelopment analysis (DEA) as its methodology. A total of 23 commercial banks were selected as the study sample and their quarterly data from 2006- 2020 was collected. In addition, an external two-stage DEA model with Tobit regression was applied to examine the determinants of cost and profit efficiency. The results show that Turkish banks currently work with relatively higher cost efficiency than profit efficiency. On the other hand, foreign banks display a lower cost and profit efficiency performance. The downward trend in profit efficiency in the Turkish banking system sends a warning signal on the health and stability of the banking sector. Multivariate Tobit regression analysis reveals how Total Assets, Deposit Share, Asset Growth, Time Deposits, NPL, and Ownership Structure significantly affect cost and profit efficiency. Ratio of liquid assets to total assets is positively correlated with the efficiency values, in contrast to results from previous studies. Previous studies have mostly been limited to scale and technical efficiency and focused on the cost efficiency of Turkish banks. In this study, the gap in the literature is filled by a comparative examination of the cost andprofit efficiency at the scale of bank ownership. The study will look at and discussed these issues at the most stable period and the pre-pandemic period in the Turkish economy.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"127 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140472693","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-31DOI: 10.32890/ijbf2024.19.1.5
Hui Lin Tok, Y. Cheah
It is widely evident that cost of living among university students are increasing over time. That said, little is understood about factorsassociated with general expenses among students in Malaysian universities. The present study uses primary survey data (n = 454)to examine the correlates of the total amount of money spent by students in a month. An ordered regression model was used to shedlight on factors contributing to different magnitudes of expenses. The explanatory variables consisted of demographic factors, financial knowledge, parental income, peer influence, and personality trait of conscientiousness. Findings from the present study showed that a large proportion of students spent between Ringgit Malaysia (RM) 201 and RM400 per month. Young, male students tended to spend more than older, female students. Expenditure was higher among Chinese students than Malays. Educational levels and income were found to correspond to spending. Having good financial knowledge was associated with reduced expenditure. Students who were influenced by their peers were likely to indulge in high spending compared to those who were not. These findings have important implications for strategic planning and to assist policymakers, parents, and university authorities in formulating better intervention measures aimed at improving students’ spending behaviour, thereby lowering cost of living.
{"title":"FACTORS INFLUENCING STUDENTS’ COST OF LIVING: EVIDENCE FROM MALAYSIAN UNIVERSITIES","authors":"Hui Lin Tok, Y. Cheah","doi":"10.32890/ijbf2024.19.1.5","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.1.5","url":null,"abstract":"It is widely evident that cost of living among university students are increasing over time. That said, little is understood about factorsassociated with general expenses among students in Malaysian universities. The present study uses primary survey data (n = 454)to examine the correlates of the total amount of money spent by students in a month. An ordered regression model was used to shedlight on factors contributing to different magnitudes of expenses. The explanatory variables consisted of demographic factors, financial knowledge, parental income, peer influence, and personality trait of conscientiousness. Findings from the present study showed that a large proportion of students spent between Ringgit Malaysia (RM) 201 and RM400 per month. Young, male students tended to spend more than older, female students. Expenditure was higher among Chinese students than Malays. Educational levels and income were found to correspond to spending. Having good financial knowledge was associated with reduced expenditure. Students who were influenced by their peers were likely to indulge in high spending compared to those who were not. These findings have important implications for strategic planning and to assist policymakers, parents, and university authorities in formulating better intervention measures aimed at improving students’ spending behaviour, thereby lowering cost of living.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"136 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140473764","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-31DOI: 10.32890/ijbf2024.19.1.2
Fadziani Yaakub, A. Buang
The concept of promise in Islamic banking contracts is a novel tool that has been introduced as a result of recent advancements. Wa’d has grown in popularity in recent years because it provides great flexibility. It was primarily developed by Malaysia’s Islamic banks for product structuring. However, there are issues arising from this principle, which is considered to be against Shariah and merely intended to preserve the bank’s interests, which is of course, contrary to Maqasid al-Shariah. The purpose of this study is to look into the significance of the promise concept in Islamic banking contracts, taking into account the maslahah and mafsadah principles recommended in Maqasid al- Shariah. The study uses a qualitative approach as it allows a more in-depth understanding of the subject matter. Data were gathered using published literature and information from the official website of Bank Negara Malaysia (BNM). A semi-structured interview was conducted with three Shariah experts from the Shariah Advisory Council of Bank Negara Malaysia (SACBNM) and two industry practitioners from Bank Islam Malaysia Berhad (BIMB) and Maybank Islamic Berhad (MIB). The data obtained was analysed using the content analysis approach. In sum, the examination of Islamic law sources and discussions with Islamic scholars revealed that the use of the principle of promise in Islamic banking transactions can benefit the micro and macro economy. The concept of promise in Islamic banking contracts can benefit both customers and Islamic banks, particularly in terms ofmeeting consumer needs, generating profit for Islamic banks, as well as contributing to the country’s development (maqasid kulliyah).
{"title":"THE APPLICATION OF PROMISE (WA‘D) IN ISLAMIC BANKING CONTRACTS IN MALAYSIA: A MASLAHAH PERSPECTIVE","authors":"Fadziani Yaakub, A. Buang","doi":"10.32890/ijbf2024.19.1.2","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.1.2","url":null,"abstract":"The concept of promise in Islamic banking contracts is a novel tool that has been introduced as a result of recent advancements. Wa’d has grown in popularity in recent years because it provides great flexibility. It was primarily developed by Malaysia’s Islamic banks for product structuring. However, there are issues arising from this principle, which is considered to be against Shariah and merely intended to preserve the bank’s interests, which is of course, contrary to Maqasid al-Shariah. The purpose of this study is to look into the significance of the promise concept in Islamic banking contracts, taking into account the maslahah and mafsadah principles recommended in Maqasid al- Shariah. The study uses a qualitative approach as it allows a more in-depth understanding of the subject matter. Data were gathered using published literature and information from the official website of Bank Negara Malaysia (BNM). A semi-structured interview was conducted with three Shariah experts from the Shariah Advisory Council of Bank Negara Malaysia (SACBNM) and two industry practitioners from Bank Islam Malaysia Berhad (BIMB) and Maybank Islamic Berhad (MIB). The data obtained was analysed using the content analysis approach. In sum, the examination of Islamic law sources and discussions with Islamic scholars revealed that the use of the principle of promise in Islamic banking transactions can benefit the micro and macro economy. The concept of promise in Islamic banking contracts can benefit both customers and Islamic banks, particularly in terms ofmeeting consumer needs, generating profit for Islamic banks, as well as contributing to the country’s development (maqasid kulliyah).","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"79 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140477357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-31DOI: 10.32890/ijbf2024.19.1.4
Yunqi Chen, Jia Sin Lim
Active funds vs passive funds represent one of the most prominent investment decisions that ought to be undertaken by investors over the decades. Our paper seeks to offer an insight into the average performance of equity mutual funds during the period when there were roughly 70 ‘all-time-highs’ recorded by S&P 500 amid the COVID-19 health crisis. Additionally, our paper aims to explore the robustness and persistence of the explanatory powers of Morningstar sustainability globes, ratings from agencies and growth tilt during the health crisis. Our results indicated that the benchmark indexes seemed to dominate mutual funds in most cases during our sampling period. The ratings from Morningstar and/or Lipper together with growth investing appeared to be ideal elements to contemplate when making investment decisions during the COVID-19 health crisis.
{"title":"MUTUAL FUND PERFORMANCE IN A BULLISH MARKET DURING THE COVID-19 CRISIS","authors":"Yunqi Chen, Jia Sin Lim","doi":"10.32890/ijbf2024.19.1.4","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.1.4","url":null,"abstract":"Active funds vs passive funds represent one of the most prominent investment decisions that ought to be undertaken by investors over the decades. Our paper seeks to offer an insight into the average performance of equity mutual funds during the period when there were roughly 70 ‘all-time-highs’ recorded by S&P 500 amid the COVID-19 health crisis. Additionally, our paper aims to explore the robustness and persistence of the explanatory powers of Morningstar sustainability globes, ratings from agencies and growth tilt during the health crisis. Our results indicated that the benchmark indexes seemed to dominate mutual funds in most cases during our sampling period. The ratings from Morningstar and/or Lipper together with growth investing appeared to be ideal elements to contemplate when making investment decisions during the COVID-19 health crisis. ","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"409 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140472524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-31DOI: 10.32890/ijbf2024.19.1.3
F. Ghapar
Trading is a business, not an investment. Traders focus on minor to secondary trends, while investors focus on the primary trend. Thetrading timeframe is crucial in technical analysis. As such a trader who trades with a minor trend timeframe, must have a trading strategy. We aim to examine the impact of the moving averages double crossover strategy on traders’ profit factor based on minor and secondary trend timeframes before, during and after the lockdown periods. Dow Theory was adopted for this study as a trend should be in effect until it gives a definite signal for a reversal. Data was collected from the Nasdaq Composite Index for a five-year period, from 2018 to 2022. During this time frame, the required data for the study was obtained at the point of the golden crossover and exiting at the dead crossover, in which 2018 to 2019 was the period before the lockdown, 2020 to 2021 was the period during lockdown, and 2022 was the year after lockdown. By using trading profits and loss for both longs and shorts, we back tested three strategies of double crossover moving averages that were as follows: i) EMA5 crossover EMA10, ii) EMA5 crossover EMA20 and iii) EMA20 crossover EMA50. A non-parametric analysis of independent samples was used. The result shows that there was a significant difference among those three strategies before the lockdown period, but no significant difference during and after the lockdown period.
{"title":"ANALYZING THE DOUBLE CROSSOVER MOVING AVERAGES STRATEGY BEFORE, DURING AND AFTER THE LOCKDOWN PERIOD","authors":"F. Ghapar","doi":"10.32890/ijbf2024.19.1.3","DOIUrl":"https://doi.org/10.32890/ijbf2024.19.1.3","url":null,"abstract":"Trading is a business, not an investment. Traders focus on minor to secondary trends, while investors focus on the primary trend. Thetrading timeframe is crucial in technical analysis. As such a trader who trades with a minor trend timeframe, must have a trading strategy. We aim to examine the impact of the moving averages double crossover strategy on traders’ profit factor based on minor and secondary trend timeframes before, during and after the lockdown periods. Dow Theory was adopted for this study as a trend should be in effect until it gives a definite signal for a reversal. Data was collected from the Nasdaq Composite Index for a five-year period, from 2018 to 2022. During this time frame, the required data for the study was obtained at the point of the golden crossover and exiting at the dead crossover, in which 2018 to 2019 was the period before the lockdown, 2020 to 2021 was the period during lockdown, and 2022 was the year after lockdown. By using trading profits and loss for both longs and shorts, we back tested three strategies of double crossover moving averages that were as follows: i) EMA5 crossover EMA10, ii) EMA5 crossover EMA20 and iii) EMA20 crossover EMA50. A non-parametric analysis of independent samples was used. The result shows that there was a significant difference among those three strategies before the lockdown period, but no significant difference during and after the lockdown period.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"175 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140471508","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：