A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob

Since gaining independence in 1957, Malaysia has successfully diversified its economy from one that was initially agriculture and commodity-based, to one that now plays host to robust manufacturing and services sectors that have propelled it to become a leading exporter of electrical appliances, ele...

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Main Authors:	Arifin, Nurul Jannah, Yaacob, Nurul Atikah
Format:	Student Project
Language:	English
Published:	Faculty of Business and Management 2018
Subjects:	Macroeconomics Securities. Fixed-income securities Government securities. Industrial securities. Venture capital
Online Access:	http://ir.uitm.edu.my/id/eprint/23584/ http://ir.uitm.edu.my/id/eprint/23584/1/PPb_NURUL%20JANNAH%20ARIFIN%20M%20BM%2018_5.pdf

id	uitm-23584
recordtype	eprints
spelling	uitm-235842019-03-29T01:54:35Z http://ir.uitm.edu.my/id/eprint/23584/ A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob Arifin, Nurul Jannah Yaacob, Nurul Atikah Macroeconomics Securities. Fixed-income securities Government securities. Industrial securities. Venture capital Since gaining independence in 1957, Malaysia has successfully diversified its economy from one that was initially agriculture and commodity-based, to one that now plays host to robust manufacturing and services sectors that have propelled it to become a leading exporter of electrical appliances, electronic parts and components. Malaysia is one of the most open economies in the world, with a trade to GDP ratio averaging over 140 percent since 2010. Openness to trade and investment have been instrumental in employment creation and income growth, with about 40 percent of jobs in Malaysia linked to export activities. Malaysia’s near-term economic outlook remains favorable, reflecting a well-diversified and open economy that has successfully weathered the impact of external shocks. This is bolstered by strong macroeconomic management, with low and stable inflation and on-track fiscal consolidation. Domestic demand is expected to continue to anchor economic growth, supported by continued income growth and a stable labor market, while an improving external environment would contribute positively to demand for Malaysia’s tradable goods and services. Multiple linear regressions model is applied to study the relationship between explanatory variables (coupon rate, liquidity risk, inflation, exchange rate, and interest rate) and explained variable (bond yield in Malaysia). Empirical results show that as from the equation, it is found that independent variable for Coupon rate (CR) has significant relationship with bond yield in Malaysia (BM). Next is the independent variable of liquidity risk (LQ) where it shows an insignificant relationship with bond yield in Malaysia (BM) Apart from that, inflation (IF) also one of the independent variables which show’s an insignificant relationship with bond yield in Malaysia (BM). Other independent variable is exchange rate (EX) and interest rate (R) shows the result of insignificant Faculty of Business and Management 2018 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/23584/1/PPb_NURUL%20JANNAH%20ARIFIN%20M%20BM%2018_5.pdf Arifin, Nurul Jannah and Yaacob, Nurul Atikah (2018) A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Macroeconomics Securities. Fixed-income securities Government securities. Industrial securities. Venture capital
spellingShingle	Macroeconomics Securities. Fixed-income securities Government securities. Industrial securities. Venture capital Arifin, Nurul Jannah Yaacob, Nurul Atikah A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob
description	Since gaining independence in 1957, Malaysia has successfully diversified its economy from one that was initially agriculture and commodity-based, to one that now plays host to robust manufacturing and services sectors that have propelled it to become a leading exporter of electrical appliances, electronic parts and components. Malaysia is one of the most open economies in the world, with a trade to GDP ratio averaging over 140 percent since 2010. Openness to trade and investment have been instrumental in employment creation and income growth, with about 40 percent of jobs in Malaysia linked to export activities. Malaysia’s near-term economic outlook remains favorable, reflecting a well-diversified and open economy that has successfully weathered the impact of external shocks. This is bolstered by strong macroeconomic management, with low and stable inflation and on-track fiscal consolidation. Domestic demand is expected to continue to anchor economic growth, supported by continued income growth and a stable labor market, while an improving external environment would contribute positively to demand for Malaysia’s tradable goods and services. Multiple linear regressions model is applied to study the relationship between explanatory variables (coupon rate, liquidity risk, inflation, exchange rate, and interest rate) and explained variable (bond yield in Malaysia). Empirical results show that as from the equation, it is found that independent variable for Coupon rate (CR) has significant relationship with bond yield in Malaysia (BM). Next is the independent variable of liquidity risk (LQ) where it shows an insignificant relationship with bond yield in Malaysia (BM) Apart from that, inflation (IF) also one of the independent variables which show’s an insignificant relationship with bond yield in Malaysia (BM). Other independent variable is exchange rate (EX) and interest rate (R) shows the result of insignificant
format	Student Project
author	Arifin, Nurul Jannah Yaacob, Nurul Atikah
author_facet	Arifin, Nurul Jannah Yaacob, Nurul Atikah
author_sort	Arifin, Nurul Jannah
title	A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob
title_short	A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob
title_full	A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob
title_fullStr	A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob
title_full_unstemmed	A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob
title_sort	study on determinants of bond yield in malaysia / nurul jannah arifin and nurul atikah yaacob
publisher	Faculty of Business and Management
publishDate	2018
url	http://ir.uitm.edu.my/id/eprint/23584/ http://ir.uitm.edu.my/id/eprint/23584/1/PPb_NURUL%20JANNAH%20ARIFIN%20M%20BM%2018_5.pdf
first_indexed	2023-09-18T23:10:59Z
last_indexed	2023-09-18T23:10:59Z
_version_	1777418800559292416

A study on determinants of bond yield in Malaysia / Nurul Jannah Arifin and Nurul Atikah Yaacob

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