Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks

Without doubt, higher performance is the ultimate objective of any business entity while minimizing the risk and informing the investors the transparent information of the business. In this paper we show a new way of thinking that willfulfill the ultimate interests of the banks due to the efforts...

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Main Authors:	Htay, Sheila Nu Nu, Salman, Syed Ahmed, Sufian, Fadzlan
Format:	Article
Language:	English
Published:	Contemporary Research Center Australia 2013
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/31263/ http://irep.iium.edu.my/31263/ http://irep.iium.edu.my/31263/1/Simultaneous_relationship_among_market_performance_risk_disclosure_quality.pdf

id	iium-31263
recordtype	eprints
spelling	iium-312632017-06-20T04:22:10Z http://irep.iium.edu.my/31263/ Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan HG1501 Banking Without doubt, higher performance is the ultimate objective of any business entity while minimizing the risk and informing the investors the transparent information of the business. In this paper we show a new way of thinking that willfulfill the ultimate interests of the banks due to the efforts of management such as being higher market value of the firms, taking less risk and providing higher level of disclosure for the stakeholders in general and the shareholders, in particular. We use simultaneous relationship among market performance, risk and disclosure quality of twelve Malaysian listed banks over a period of ten years from 1996 until 2005. Tobin’Q, standard deviation of monthly stock return and weighted disclosure score are analyzed. Three theories, namely, signaling theory, risk and return theory and market discipline theory are tested and only market discipline theory is found to be significant indicating that banks are highly regulated compared to other industries, especially in terms of risk factors and information disclosure. Contemporary Research Center Australia 2013-07 Article PeerReviewed application/pdf en http://irep.iium.edu.my/31263/1/Simultaneous_relationship_among_market_performance_risk_disclosure_quality.pdf Htay, Sheila Nu Nu and Salman, Syed Ahmed and Sufian, Fadzlan (2013) Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks. International Journal of Education and Research, 1 (7). pp. 1-16. ISSN 2201-6333 E-ISSN 2201-6740 http://www.ijern.com/journal/July-2013/19.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
description	Without doubt, higher performance is the ultimate objective of any business entity while minimizing the risk and informing the investors the transparent information of the business. In this paper we show a new way of thinking that willfulfill the ultimate interests of the banks due to the efforts of management such as being higher market value of the firms, taking less risk and providing higher level of disclosure for the stakeholders in general and the shareholders, in particular. We use simultaneous relationship among market performance, risk and disclosure quality of twelve Malaysian listed banks over a period of ten years from 1996 until 2005. Tobin’Q, standard deviation of monthly stock return and weighted disclosure score are analyzed. Three theories, namely, signaling theory, risk and return theory and market discipline theory are tested and only market discipline theory is found to be significant indicating that banks are highly regulated compared to other industries, especially in terms of risk factors and information disclosure.
format	Article
author	Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan
author_facet	Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan
author_sort	Htay, Sheila Nu Nu
title	Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
title_short	Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
title_full	Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
title_fullStr	Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
title_full_unstemmed	Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
title_sort	simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from malaysian listed banks
publisher	Contemporary Research Center Australia
publishDate	2013
url	http://irep.iium.edu.my/31263/ http://irep.iium.edu.my/31263/ http://irep.iium.edu.my/31263/1/Simultaneous_relationship_among_market_performance_risk_disclosure_quality.pdf
first_indexed	2023-09-18T20:45:30Z
last_indexed	2023-09-18T20:45:30Z
_version_	1777409647933652992

Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks

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