Malaysia’s determination to become a hub for Islamic banking in Southeast Asia has led the Central Bank of Malaysia to grant licenses to foreign Islamic banks to operate in the country. Due to the intense competition among Islamic banks, the introduction of more innovative products is projected to tap investment opportunities not only for Malaysia but also for the rapidly growing Southeast Asian region. This paper assesses the performance of Malaysian Islamic banking industry since the introduction of the first Islamic bank two decades ago by using financial ratios. The ratios are divided into four categories; profitability, liquidity, risk and solvency, and commitment to economy and Muslim community. All 16 Islamic banks as listed by Bank Negara Malaysia were selected in the sample and to get the maximum number of observations, the period of 2005 to 2012 is selected. The chosen financial ratios indicated that domestic Islamic banks performed better during the 2005 to 2012 period in .....

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The paper examines the mediation impact of employee loyalty in the relationship of employee ownership and financial performance of state-owned entities of Pakistan. Employee ownership is measured as percentage holding in state-owned entities, and financial performance is assessed trough profitability ratios; net profit margin and return on assets. Employee loyalty is determined through questionnaire circulated among the employees covered under the scheme. Meanwhile, secondary data is collected from already published sources. The study reveals that employee loyalty partially mediates the impact of employee ownership on the financial performance, which will support the policy makers to design corporate policies..

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This paper investigates the firm-specific elements, which are profitability, growth, tangible assets and liquidity in determining the capital structure of Food and Beverage (F&B) firms in Malaysia. The research employed panel data regression model based on ordinary least square (OLS) method. The sample of research consists of eight firms listed in the food producer segment in Bursa Malaysia for the period between 2013 and 2018, with a total observation of 48 firms-years. Debt to equity was chosen as dependent variable. On the other hand, profitability, asset growth, tangibility of assets, and liquidity were selected as independent variables. The findings showed that profitability and tangibility of assets are positively related to debt to equity. Meanwhile, growth of assets and liquidity were insignificant to the dependent variable. The trade-off theory of capital structure is very much applicable to the F&B firms in Malaysia due to the fact that profitability and tangibility of assets.....

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Purpose – This paper aims to investigate the impact of competition in the Malaysian Islamic banking industry and the market structure of the industry by focusing on the particular impact created by the entrance of fully fledged foreign Islamic banks plus the introduction of Islamic subsidiaries of existing conventional banks in the country (domestic and foreign ownership). Design/methodology/approach – Using a sample of 16 Islamic banks in the country that operated between 2008 and 2015, this paper measures the competition among the Islamic banks using the Panzar-Rosse Model and by looking at the market structure of the industry using the k-bank concentration ratio and the Herfindahl-Hirschman Index. Findings – The study found that between 2008 and 2015, the Malaysian Islamic banking industry operated in monopolistic competition conditions with a moderately concentrated market structure. The introduction of foreign Islamic banks caused the market structure to become more compet.....

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This study aims to identify the technical efficiency of Development Financial Institutions (DFIs) in Malaysia with the selected inputs of fixed asset and labour. Meanwhile, the output used in the study is financing. DFI is an institution that plays an important role in socio-economic development under the supervision of Bank Negara Malaysia (BNM). Using annual data from 2009 to 2018, technical efficiency is analysed using Data Envelopment Analysis (DEA) on the ten institutions selected in the DFIs. DEA results show that Sabah Development Bank Berhad (SDB) is the only institution considered as the most efficient. The rest of DFIs in the sample were deemed technical inefficient. The results also indicate that inefficient institutions including those with the lowest performance which are Credit Guarantee Corporation (CGC), Bank Pertanian Malaysia Berhad (Agrobank) and Bank Simpanan Nasional (BSN) have inefficient management in resource utilisation. Thus, activities in the operation of DFI.....

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This study aims to measure the efficiency of the general takaful operators in Malaysia with the selected inputs, labor cost and management fees. On the other hand, the output used is gross contribution. General takaful operators are the institutions governed by the Islamic Financial Services Act 2013 (IFSA). IFSA 2013 is the key statute governing the Islamic finance sector, which replaced statutes such as the Islamic Banking Act 1983 and the Takaful Act 1984. Based on the annual data gathered from 2014 to 2018 (post implementation of IFSA 2013), the efficiency is analysed using Data Envelopment Analysis (DEA) on four selected institutions in the general takaful business. DEA results show that Etiqa General Takaful Berhad, Syarikat Takaful Malaysia Am Berhad are considered as the most efficient. The rest of general takaful operators in the sample were deemed technical inefficient. The results also indicate that inefficient institutions including those with the lowest performance which a.....

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