This study examines the issues of winner's curse, size effect and bandwagon effect in explaining the under-pricing phenomenon of Malaysian IPOs, for the period from January 2001 to December 2008. The average initial return for the Malaysian private placement IPOs (a proxy for informed investors) is significantly lower than that of the non-private placement IPOs (a proxy for uninformed investors), which gives support to the winner's curse hypothesis, where uninformed investors demand a higher initial return in the absence of informed investors. Using listing board as proxy for size of companies, we find that the smaller the company, the higher the average initial return, thus giving support to size effect, where investors usually demand higher initial return for smaller companies due to their higher perceived risk. The study also finds that the presence of a large number of informed investors as compared to uninformed investors in an IPO exercise will result in an increase in demand for that particular stock in the secondary market, which gives support to the bandwagon effect.
This study aims to determine, from the perspective of investors, the factors that predict Islamic unit trust (IUT) investment intentions. Additionally, this paper examines the moderating effect of fintech self-efficacy (FSE) on the relationship between attitude and investment intention. A total of 392 data were collected from IUT investors in Malaysia and analyzed using partial least squares structural equation modeling. The findings reveal that subjective norms have the highest impact on investment intention, followed by attitude and FSE, while religiosity is not significantly associated with investment intention in Islamic unit trust funds. Attitude significantly mediates religiosity-intention and Islamic financial literacy-intention relationships. FSE significantly moderates the attitude-intention relationship. The results shed light on the key factors that increase investing behavior and have direct managerial implications with regard to marketing strategies and target markets. These findings suggest that IUT service providers should take the lead in attracting customers through effective and targeted marketing initiatives, particularly by enhancing customers' FSE and capabilities. This study provides empirical evidence on the interrelationships between Islamic financial literacy, religiosity, and FSE in examining investors' behavior using the Theory of Planned Behavior framework. The study explores the moderating role of FSE on the relationship between attitude and investment intention.
"Smart cities" have become the development direction pursued by city leaders to address challenges related to rapid growth in urban areas. The sustainable development of the logistics sector has important practical significance for the evolution of smart cities. This study assessed the inefficiency rate and total factor productivity (TFP) of logistics in 36 Chinese cities from 2006 to 2015. The directional distance function (DDF) and Luenberger productivity index analytical approaches were used to assess the relevant parameters. The results revealed that the logistics system inefficiency rate of the eastern region was much higher than that of the central and western regions, while that of the western region was slightly higher than that of the central region. This study identified the main constraints of the logistics TFP in different regions in China. This finding is used to promote policy-making and investment planning to improve China's competitive advantage. The results documented that the central region of China needs to accelerate logistics reforms and use its location advantage of its location to form an organic connection with the eastern and western regions. Countries can use such metrics to take actions to improve their logistics performance, as such an improvement has a causal relationship with economic development.
Brook Baker describes the potential harms to global health from the Trans Pacific Partnership Agreement and its failure to balance the interests of patients and the public with those of industry.
Studies have shown that factors like trade, urbanization, and economic growth may increase the ecological footprint (EFP) since ecological distortions are mainly human-induced. Therefore, this study explores the effect of economic growth and urbanization on the EFP, accounting for foreign direct investment and trade in Nigeria, using data from 1977 to 2016. This study used the EFP variable as against the CO2 emissions used in the previous studies since the former is a more comprehensive and extensive measure of environmental quality. We apply the novel dynamic autoregressive distributed lag (ARDL) simulations for model estimation, the Bayer and Hanck J Time Ser Anal 34: 83-95, (2013) combined cointegration, and the ARDL bounds test for cointegration. Although the results affirmed the presence of long-run relationship among the variables, economic growth deteriorates the environment in the short run, while urbanization exacts no harmful impact. In the long run, FDI and trade deteriorate the environment while economic growth adds to environmental quality. It is recommended that policymakers strengthen the existing environmental regulations to curtail harmful trade and provide rural infrastructures to abate urban anomaly.
The Belt and Road Initiative (BRI) is closely linked to the ecological sustainability of the infrastructure ventures that intrinsically include the aspects of climate change and pollution. Though there exists literature on the environmental Kuznets curve (EKC) and pollution haven hypothesis (PHH), very few explore the scope in the light of Belt and Road host countries (B&RCs). Therefore, the study examines the income-induced EKC and Chinese outward foreign direct investment (FDI)-based PHH in the multivariate framework of people's connectivity and technology innovation in B&RCs from 2003 to 2018. The outcome of the study reveals that the observed relationship is quantile-dependent, which may disclose misleading results in previous studies using traditional methodologies that address the averages. Utilizing the novel "Method of Moments Quantile Regression (MMQR)" of Machado and Silva (J Econom 213:145-173, 2019), the findings confirm an inverted U-shape association between economic growth and CO2 emissions only at lower to medium emission countries, thus validating the EKC hypothesis. The Chinese outward FDI flows increase carbon emissions at medium to high emission countries, thereby confirming PHH. The findings also indicate that people's connectivity contributes to increasing emissions while innovation mitigates carbon emissions at lower to medium polluted countries. Moreover, the outcomes of Granger causality confirm one-way causality between economic growth and CO2 emissions, between FDI and CO2 emissions, between people's connectivity and CO2 emissions, and between innovation and CO2 emissions. The results offer valuable insight for legislators to counteract CO2 emissions in B&RCs through innovation-led energy conservation in infrastructure projects while adopting green and sustainable financing mechanisms to materialize mega construction projects under the BRI.
The market for the halal food and beverage industry sector has experienced rapid growth in recent years, which indicate excellent investment opportunities. This paper examine the effect of Technical Efficiency (TE) on firm value in 5 selected influential countries in halal food and beverage sector based on Global Islamic Economy Report 2020. Two steps estimation was used to run the data, using the Stochastic Frontier Analysis (SFA) model to determine the company's TE and panel data to test the effect of TE through firm value. The results show that Indonesia has the highest score for TE (62%), followed by Pakistan (59%), South Africa (57%), Malaysia (55%), and Singapore (52%), which means, in general, there is inefficiency in allocating resources over 38% up to 48% and needs to be improved by halal food and beverage companies in. Regarding panel data, all countries sample except Pakistan highlight that TE significantly affect company value. It indicates that the crucial part of managing efficiency can be a sign in stock market performance. The result shows that company managers should set efficiency strategies to their business process for creating sustainability and increase their value in the capital market. As for investors, this TE can be used as an indicator before choosing company stocks; if the company is efficient, then it is worthy of being one of the portfolio assets. Form the government side, the finding can help them to set appropriate policy setting to boost halal food and beverages industry such as giving subsidy or incentive to increase the efficiency ability of halal food and beverage companies and identify the industry's strength by comparing the result of TE between 5 countries.
Aquaculture businesses in Malaysia require careful and comprehensive financial analysis to be successful. Comprehensive financial analysis has three key components, namely financial position, profitability and liquidity/cash flow. This research focuses on using pro forma income statements to analyze financial positions and to evaluate the effect of government incentives on sustainability of Malaysian aquaculture farms. This paper is divided into two sections; the first section discusses and provides the finding and comparability of the financial analysis on freshwater and brackish water producers. In the first section, the discussion was based on financial viability criteria, namely net present value (NPV), internal rate of return (IRR) and benefit cost ratio (BCR)) for base study. The evaluation process was carried out using four different phases; base study and government incentives simulations, Pioneer Status (PS), Investment Tax Allowance (ITA), and Accelerated Capital Allowance (ACA) for effectiveness of government incentives and roles in increase of profitability and production. The results showed that in all brackish water farms, NPV after the ACA incentive showed a higher and positive value comparable to individual PS and ITA. The effect of Government Incentive on Penaeus vannamei and Grouper showed that IRR and NPV on ACA (based on PS) is 2% and 9%, respectively higher than ACA (based on ITA). Meanwhile, in Barramundi farming ACA (based on ITA) was 8% higher than ACA (based on PS). The results on freshwater showed that ACA (based on ITA) on Tilapia and Catfish was 8% and 6% higher than ACA (based on PS). This paper concludes that the aquaculture operators should choose to accept PS with ACA on Penaeus vannamei and Grouper and choose ACA based on ITA on Barramundi, Tilapia and Catfish in order to maximize private profitability.
The rapid growth of corporate investment in the Malaysian private hospital sector has had a considerable impact on the health care system. Sustained economic growth, the development of new urban areas, an enlarged middle class, and the inclusion of hospital insurance in salary packages have all contributed to a financially lucrative investment environment for hospital entrepreneurs. Many of Malaysia's most technologically advanced hospitals employing leading specialists are owned and operated as corporate business ventures. Corporate hospital investment has been actively encouraged by the government, which regards an expanded private sector as a vital complement to the public hospital system. Yet this rapid growth of corporately owned private hospitals has posed serious contradictions for health care policy in terms of issues such as equity, cost and quality, the effect on the wider health system, and the very role of the state in health care provision. This article describes the growth of corporate investment in Malaysia's private hospital sector and explores some of the attendant policy contradictions.
One of the most pressing challenges facing food systems in Africa is ensuring availability of a healthy and sustainable diet to 2.4 billion people by 2050. The continent has struggled with development challenges, particularly chronic food insecurity and pervasive poverty. In Africa's food systems, fish and other aquatic foods play a multifaceted role in generating income, and providing a critical source of essential micronutrients. To date, there are no estimates of investment and potential returns for domestic fish production in Africa. To contribute to policy debates about the future of fish in Africa, we applied the International Model for Policy Analysis of Agriculture Commodities and Trade (IMPACT) to explore two Pan-African scenarios for fish sector growth: a business-as-usual (BAU) scenario and a high-growth scenario for capture fisheries and aquaculture with accompanying strong gross domestic product growth (HIGH). Post-model analysis was used to estimate employment and aquaculture investment requirements for the sector in Africa. Africa's fish sector is estimated to support 20.7 million jobs in 2030, and 21.6 million by 2050 under the BAU. Approximately 2.6 people will be employed indirectly along fisheries and aquaculture value chains for every person directly employed in the fish production stage. Under the HIGH scenario, total employment in Africa's fish food system will reach 58.0 million jobs, representing 2.4% of total projected population in Africa by 2050. Aquaculture production value is estimated to achieve US$ 3.3 billion and US$ 20.4 billion per year under the BAU and HIGH scenarios by 2050, respectively. Farm-gate investment costs for the three key inputs (fish feeds, farm labor, and fish seed) to achieve the aquaculture volumes projected by 2050 are estimated at US$ 1.8 billion per year under the BAU and US$ 11.6 billion per year under the HIGH scenario. Sustained investments are critical to sustain capture fisheries and support aquaculture growth for food system transformation towards healthier diets.
Extensive theoretical and empirical evidence supports the crucial role of savings in driving a nation's economic growth and development. However, previous studies have not considered their potential environmental implications. This study aims to explore the influence of savings and remittances on the Developing-8 countries (D-8) from 1989 to 2019, using the panel autoregressive distributed (ARDL) model. The findings reveal that national savings and remittances, in the long run, help mitigate environmental degradation in the D-8 countries but energy use and population growth stimulate carbon dioxide (CO2) emissions. In contrast, economic growth does not significantly affect these countries' environmental quality in the long run. However, none of the explanatory variables have any significant relationship with CO2 emissions in the short run. Therefore, policymakers in the D-8 countries are strongly encouraged to prioritize the enhancement of national savings across the three economic agents to maximize the positive effects of savings on environmental quality. Government savings can be increased by reducing deficits and borrowings, while corporate savings can be encouraged by implementing investment tax credits and promoting research and development. Additionally, governments can embark on public enlightenment campaigns on financial education and provide incentives to encourage household savings.
The adoption of Profit-Loss Sharing arrangement in Islamic banking models can create value for their shareholders. Previous studies discuss Profit-Loss Sharing arrangement in the context of financial intermediation theory, but fail to link the adoption of Profit-Loss Sharing arrangement with value creation and to produce empirical evidence. The aim of this study is to address optimal conditions of the Profit-Loss Sharing contracts in Islamic banking models to minimize the problems of asymmetric information and transaction costs. Three propositions are presented to achieve the optimal conditions of Profit-Loss Sharing contracts in Islamic banking models that can create positive values, given that: First, for mudharaba contract, Islamic banks as rabbul maal give incentives of (0* (RP') to entrepreneurs if the positive value of the Islamic bank's expected net profit is obtained. Next, if an Islamic bank, as mudharib is appointed as wakeel, the depositors of mudharaba investment account are imposed 6*(m) for cost of processing information. Third, for musyaraka contract, the Islamic bank is proposed to incur monitoring cost of c* (y). In addition, this study also produces empirical evidence to determine to what extent the adoption of Profit-Loss Sharing arrangement in Islamic banks creates value for their shareholders. This study utilizes the Malaysian Islamic banks panel data from 2005-2009 and employs Economic Value Added (EVA) as a technique of value creation measurement of Islamic banks. The empirical findings reveal that there is no indication that the adoption of Profit-Loss Sharing arrangement on the deposits structure (MDIA) significantly creates positive value to Islamic banks. This result is consistent for both measurement of value creation against shorter and longer terms opportunity costs of capital employed. This suggests that Islamic banks utilize a lower cost of capital, as Non-mudharaba deposits accounts constitute a large amount of current and saving accounts. On the other hand, for asset structure, this study finds that funds allocated in Financing (FPLS) based on Profit-Loss Sharing arrangement results in a reduction in the value of Islamic banks. However, funds allocated in Securities Investment (FIM) using Profit-Loss Sharing arrangement are significant and create positive value. Collectively, the findings reveal that theoretically, Profit-Loss Sharing arrangement can create value for the shareholders of Islamic banks, and it is evident that Islamic banks need to extensively utilize Profit-Loss Sharing arrangement in Islamic banking operation.
According to the United Nations Agenda, the 2023 sustainable environment is necessary to secure this planet's future; public-private partnerships investment in energy is crucial to sustainable development. The research examines the quantile association between public-private partnership ventures in energy and environmental degradation in ten developing nations, and data is used from January 1998-December 2016. The advanced econometrics quantile-on-quantile regression approach is used to control the issues of heterogeneity and asymmetric relationship. According to the quantile-on-quantile approach, there is a strong positive association between public-private partnerships in energy and environmental degradation in Argentina, Brazil, Bangladesh, and India. But the negative relationship is observed on different quantiles of China, Malaysia, Mexico, Peru, Thailand, and the Philippines. The findings suggest that the world needs to act as a single community and divert its resources toward renewable energy sources to control climate change; also, to accomplish the UN 15-year road map of Agenda 2023 with 17-SDGs; out of these 17 sustainable goals, SDG-7 is related to affordable and clean energy, SDG-11 is about sustainable cities and communities, and SDG-13 focuses on climate action for sustainable development.
The study aimed to investigate the impact of behavioral biases on herding for Islamic financial products with the mediation of shariah literacy. An adopted questionnaire from several published studies was used to collect data. The data were collected from 410 respondents and were analyzed with SmartPLS. The results for the direct impact showed that self-attribution, illusion of control, and information availability have a positive and significant impact on herding for Islamic financial products while shariah literacy showed an insignificant impact on herding. The results for mediation showed that previously significant and positive impact turned to insignificant when shariah literacy was introduced as mediating variable between the illusion of control, self-attribution, information availability, and herding. From a theoretical perspective, this study would contribute to the existing body of knowledge of financial decision making from shariah literacy point-out. On the other hand, the findings of this study may be useful for investors to avoid herding in the Islamic financial markets. The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of herding behavior in Islamic financial products with a mediating role of shariah literacy. The key limitation of the study includes data that were collected from three districts of Punjab, Pakistan.
Estimating the asymmetrical influence of foreign direct investment is the primary goal of the current study. In addition, further controlled variables affect environmental degradation in OIC nations. Due to this, current research employs the asymmetric (NPARDL) approach and the data period from 1980 to 2021 to estimate about viability of the EKC (environmental Kuznets curve) theory. The study utilized greenhouse gas (GHG) including emissions of carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and ecological footprint as substantial parameters of environmental quality. A nonlinear link between foreign direct investments, trade openness, economic growth, urbanization, energy consumption, and environmental pollution with CO2, N2O, CH4, and ecological footprint in the OIC nations is confirmed by the study's outcomes, which however reveals inconsistent results. Furthermore, the results also show that wrong conclusions might result from disregarding intrinsic nonlinearities. The study's conclusions provide the most important recommendations for decision-makers.
The implementation of this research consists of 2 (two) aspects: the making and testing of bio-briquettes called technological aspects and economic analysis called economic aspects. Bio-briquettes is made from cashew nutshell waste obtained from Southeast Sulawesi, Indonesia. It is followed by pyrolysis, which is carried out in a simple batch type reactor by heating using liquefied petroleum gas (LPG). The bio-briquettes product has a calorific value of 29.49 MJ/kg, moisture content of 5.3%, ash content of 4.96%, volatile substances content of 17.16%, and carbon content of 72.62%, which meets the universally accepted bio-briquettes standard (SNI 016235-2000), Japanese, English and ISO 17225. The bio-briquettes product is suitable as an energy source. The economic analysis of the cashew nutshell was analyzed to determine its economic feasibility. For the bio-briquettes production capacity in 2,000 tons/year, cashew nut shell-briquettes products can be sold at 1,052,878 USD/year. The total production cost is USD842,304/year. The net profit is of USD147,402/year. The cost of LPG for 2,000 tons/year production capacity is USD954,358/years. The replacement of LPG with cashew seed bio-briquettes tends to help the average household of Muna Regency community to reduce the annual cost by 37.00%. In conclusion, bio-briquettes production's economic feasibility as analyzed from the investment rate is 23.55%, payout time is 3.42 years, and break-even point is 50.09%.
Twelve-member countries of the Asia Pacific Economic Cooperation (APEC) are negotiating the Trans-Pacific Partnership Agreement (TPPA), a free trade agreement to facilitate international trade and investment. As reported by multiple sources, the TPPA would grant the same trade benefits and legal protections to tobacco products, services and investments that it would provide to other sectors. Malaysia proposed excluding tobacco control measures from the scope of all TPPA chapters while the US proposed only to establish a consultation process in tobacco-related disputes and to declare that tobacco control measures serve a health objective within the scope of the general exceptions.