Examining systematic risk on Malaysian firms: panel data evidence

This study is motivated by the issue of inconclusiveness in the literature pertaining to the impact of firm specific variables towards the systematic risk, with a specific focus given on the financial leverage and firms’ financing policies. By employing panel data and Fixed Effect Model (FEM), this...

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Main Authors:	Ibrahim, Khairunisah, Haron, Razali
Format:	Article
Language:	English
Published:	Global Business and Social Entrepreneurship (GBSE) 2016
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/50216/ http://irep.iium.edu.my/50216/ http://irep.iium.edu.my/50216/1/GBSE_1%282%29%2C_26-30_%28March_2016%29_risk.pdf

id	iium-50216
recordtype	eprints
spelling	iium-502162016-10-25T03:49:07Z http://irep.iium.edu.my/50216/ Examining systematic risk on Malaysian firms: panel data evidence Ibrahim, Khairunisah Haron, Razali HG4001 Financial management. Business finance. Corporation finance. This study is motivated by the issue of inconclusiveness in the literature pertaining to the impact of firm specific variables towards the systematic risk, with a specific focus given on the financial leverage and firms’ financing policies. By employing panel data and Fixed Effect Model (FEM), this study examines comprehensively the determinants of systematic risk of 824 non-financial listed firms in Malaysia, for the period of fourteen years, from 2000 until 2013. To gain an inclusive understanding on the systematic risk, inter-industry variations is also investigated using the FEM. Overall findings reveal that financial leverage is the most significant variable influencing the systematic risk of Malaysian firms. Other controlling variables are not found to be significant. However, interestingly, results from the inter-industry analysis shows different views with some significant impact from other firm specific controlling variables for certain industries. Findings from this study add to the literature on systematic risk, especially on the inter-industry differences in relation to the factors influencing the firms’ exposures to the systematic risk. Global Business and Social Entrepreneurship (GBSE) 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/50216/1/GBSE_1%282%29%2C_26-30_%28March_2016%29_risk.pdf Ibrahim, Khairunisah and Haron, Razali (2016) Examining systematic risk on Malaysian firms: panel data evidence. Journal of Global Business and Social Entrepreneurship (GBSE), 1 (2). pp. 26-30. E-ISSN 2462-1714 http://gbse.com.my/isimarch16/GBSE%201(2)%2026-30%20(March%202016).pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Ibrahim, Khairunisah Haron, Razali Examining systematic risk on Malaysian firms: panel data evidence
description	This study is motivated by the issue of inconclusiveness in the literature pertaining to the impact of firm specific variables towards the systematic risk, with a specific focus given on the financial leverage and firms’ financing policies. By employing panel data and Fixed Effect Model (FEM), this study examines comprehensively the determinants of systematic risk of 824 non-financial listed firms in Malaysia, for the period of fourteen years, from 2000 until 2013. To gain an inclusive understanding on the systematic risk, inter-industry variations is also investigated using the FEM. Overall findings reveal that financial leverage is the most significant variable influencing the systematic risk of Malaysian firms. Other controlling variables are not found to be significant. However, interestingly, results from the inter-industry analysis shows different views with some significant impact from other firm specific controlling variables for certain industries. Findings from this study add to the literature on systematic risk, especially on the inter-industry differences in relation to the factors influencing the firms’ exposures to the systematic risk.
format	Article
author	Ibrahim, Khairunisah Haron, Razali
author_facet	Ibrahim, Khairunisah Haron, Razali
author_sort	Ibrahim, Khairunisah
title	Examining systematic risk on Malaysian firms: panel data evidence
title_short	Examining systematic risk on Malaysian firms: panel data evidence
title_full	Examining systematic risk on Malaysian firms: panel data evidence
title_fullStr	Examining systematic risk on Malaysian firms: panel data evidence
title_full_unstemmed	Examining systematic risk on Malaysian firms: panel data evidence
title_sort	examining systematic risk on malaysian firms: panel data evidence
publisher	Global Business and Social Entrepreneurship (GBSE)
publishDate	2016
url	http://irep.iium.edu.my/50216/ http://irep.iium.edu.my/50216/ http://irep.iium.edu.my/50216/1/GBSE_1%282%29%2C_26-30_%28March_2016%29_risk.pdf
first_indexed	2023-09-18T21:10:58Z
last_indexed	2023-09-18T21:10:58Z
_version_	1777411249864179712

Examining systematic risk on Malaysian firms: panel data evidence

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