Does economic freedom fosters banks’ performance? Panel evidence from Malaysia

Does economic freedom fosters banks’ performance? Panel evidence from Malaysia

The present paper provides new empirical evidence on the impact of economic freedom on banks’ performance. The empirical analysis is confined to the Malaysian banking sector during the period of 1999–2007. We find that overall economic freedom and business freedom exerts positive impacts, implying t...

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Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Elsevier 2010
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/5208/
http://irep.iium.edu.my/5208/
http://irep.iium.edu.my/5208/
http://irep.iium.edu.my/5208/1/JCAE13.pdf
id iium-5208
recordtype eprints
spelling iium-52082011-11-03T08:58:59Z http://irep.iium.edu.my/5208/ Does economic freedom fosters banks’ performance? Panel evidence from Malaysia Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking The present paper provides new empirical evidence on the impact of economic freedom on banks’ performance. The empirical analysis is confined to the Malaysian banking sector during the period of 1999–2007. We find that overall economic freedom and business freedom exerts positive impacts, implying that higher (lower) freedom on the activities that banks can undertake and entrepreneurs to start businesses increases (reduces) banks’ profitability. The empirical findings seem to suggest that corruption has a corrosive impact on Malaysian banks’ profitability. Interestingly, the impact of monetary freedom is negative, demonstrating the importance of government intervention in determining the profitability of banks operating in the Malaysian banking sector. Elsevier 2010-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5208/1/JCAE13.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) Does economic freedom fosters banks’ performance? Panel evidence from Malaysia. Journal of Contemporary Accounting & Economics, 6 (2). pp. 77-91. ISSN 1815 5669 http://www.elsevier.com/wps/find/journaldescription.cws_home/720162/description#description DOI: 10.1016/j.jcae.2010.09.003
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
Sufian, Fadzlan
Habibullah, Muzafar Shah
Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
description The present paper provides new empirical evidence on the impact of economic freedom on banks’ performance. The empirical analysis is confined to the Malaysian banking sector during the period of 1999–2007. We find that overall economic freedom and business freedom exerts positive impacts, implying that higher (lower) freedom on the activities that banks can undertake and entrepreneurs to start businesses increases (reduces) banks’ profitability. The empirical findings seem to suggest that corruption has a corrosive impact on Malaysian banks’ profitability. Interestingly, the impact of monetary freedom is negative, demonstrating the importance of government intervention in determining the profitability of banks operating in the Malaysian banking sector.
format Article
author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
title Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
title_short Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
title_full Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
title_fullStr Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
title_full_unstemmed Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
title_sort does economic freedom fosters banks’ performance? panel evidence from malaysia
publisher Elsevier
publishDate 2010
url http://irep.iium.edu.my/5208/
http://irep.iium.edu.my/5208/
http://irep.iium.edu.my/5208/
http://irep.iium.edu.my/5208/1/JCAE13.pdf
first_indexed 2023-09-18T20:13:42Z
last_indexed 2023-09-18T20:13:42Z
_version_ 1777407646695948288

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