The government of any country can play a great role in promoting economic and environmental policy reforms in both normal and crisis periods, but during the crisis period, the role of the government should take the economy into a recovery position. The stock market is the backbone of the financial system that needs the government's attention, especially in the period of financial stress and environmental protection is the responsibility of every economy to live in a healthy environment. Combining this motive, this study analyzed the role of the government towards the stock market and carbon emission by using different approaches, including the wavelet approach, OLS regression, and the Granger causality test. The wavelet approach is useful for analyzing the role of the government at different time intervals by using the time horizon from 1993 to 2021. World governance's six indicators in terms of voice and accountability, control of corruption, rules of law, regulatory quality, political stability, and government effectiveness are used as the proxy for the role of the government. Our findings show that all WGI indicators have a positive relationship with the stock market of Malaysia except voice and accountability while concerning voice and accountability, the role of the government of Malaysia is negative on the stock market. Similarly, our findings also show that the effective government governance mechanism through WGI indicators has a significant positive impact on CO2 emission due to industrialization. Furthermore, findings of the Granger causality test reveal that all the WGI indicators cause to stock market of Malaysia, and political stability has bi-directional causality indicating stock market index is also a factor that caused the political stability within Malaysia. In the Granger causality results of the CO2 and WGI indicators, there is unidirectional causality found between rules of law and regulatory quality with CO2 emission. This study advocated strong implementations for the investors for investment decisions in effective governance countries and implications for the government to remove their weakness by making effective governance related to the economy and as well as the environments within the country.
This research aims to look into the effect of COVID-19 on emerging stock markets in seven of the Association of Southeast Asian Nations' (ASEAN-7) member countries from March 21, 2020 to April 31, 2020. This paper uses a ST-HAR-type Bayesian posterior model and it highlights the stock market of this ongoing crisis, such as, COVID-19 outbreak in all countries and related industries. The empirical results shown a clear evidence of a transition during COVID-19 crisis regime, also crisis intensity and timing differences. The most negatively impacted industries were health care and consumer services due to the Covid-19 drug-race and international travel restrictions. More so, study results estimated that only a small number of sectors are affected by COVID-19 fear including health care, consumer services, utilities, and technology, significance at the 1%, 5%, and 10%, that measure current volatility's reliance on weekly and monthly variables. Secondly, it is found that there is almost no chance that the COVID-19 pandemic would positively affect the stock market performance in all the countries, mainly Indonesia and Singapore were the countries most affected. Thirdly, results shown that Thailand's stock market output has dropped by 15%. Results shows that COVID-19 fear causes an eventual reason of public attention towards stock market volatility. The study presented comprehensive way forwards to stabilize movement of ASEAN equity market's volatility index and guided the policy implications to key stakeholders that can better help to mitigate drastic impacts of COVID-19 fear on the performance of equity markets.
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.
Pollution in the environment is today the biggest issue facing the globe and the main factor in the development of many fatal diseases. The main objective of the study to investigate green investments, economic growth and financial development on environmental pollution in the G-7 countries. This study used annual penal data from 1997 to 2021. The panel NARDL (Non-linear autoregressive distributed lag) results affirm that the positive change of green investment and negative shock in green investment have a significant and positive association with environment pollution in G-7 nations. Our findings provide more evidence for the long-term asymmetry between financial development and environmental performance. However, the findings confirm that a positive modification in financial development has a positive and significant effect on environment pollution. Whereas negative shock in financial development is negative and insignificant relationship with environment pollution. Moreover, the outcomes of the study reveal that both positive shock in gross domestic product growth and negative shock of economic growth have a significant and positive link with environment pollution in G-7 countries. According to the findings, by lowering carbon dioxide emissions, green investments reduced environmental pollution in the G-7 nations over the long and short term. Moreover, it is an innovative research effort that provides light on the connection between green investments, financial development, and the environment while making mention to the EKC in G-7 countries. After all these, our recommendation is to increases green investment expenditures to reduce environmental pollution in the G-7 nations based on our findings. Additionally, one important way for the nation to achieve its sustainable development goals is to improve advancements in the financial sector.
Stock market, is one of the most important financial market which has a close relationship with a country's economy, due to which it is often called the barometer of the economy. Over the past 25 years, the stock markets have been affected by different global economic shocks. Various researchers have analyzed different aspects of these effects one by one, however, this study is an assessment of stock market interrelationship of emeriging Asian economies which include most of the East Asian, and Southeast Asian emerging economies with special focus on China for past decades during which different crisis occurred. We used Morgan Stanley capital international (MSCI) daily indices data for each stock market and compared Chinese stock market with the stock markets of India, Pakistan, Malaysia, Singapore, and Indonesia. We analyzed the data through the individual wavelet power spectrum, cross-wavelet transform and wavelet coherence, to determine the correlation and volatility among the selected stock markets. These model have the power to analyze co-movements among these countries with respect to both frequency and time spaces. Our findings show that there are co-movement patterns of higher frequencies during the crises periods of 1997, 2008 and 2015. The dependency strength among the considered economies is noted to increase in the crisis periods, which implies increased short- and long-term benefits for the investors. From a financial point of view, it has been determined that the co-movement strength among the emerging economies of Asia may have an effect on the VaR (Value at Risk) levels of a multi-country portfolio. Furthermore, the stock market of China shows a high correlation with the other six Asian stock emerging markets in both high and low-frequency spectrums. The association of the south and east Asian stock market with Chinese stock markets show the interconnection of these economies with the economy of China since past two decades. These findings are useful for investors, portfolio managers and the policymaker around the globe.
The purpose of this study was to examine the impact of aging on economic growth. The study used dynamic growth model and employed Autoregressive Distributed Lag (ARDL) approach for the period of 1980 to 2011. Three proxies for aging are used namely fertility rate, life expectancy and old dependency ratio. However, only fertility rate is detected to have a long run cointegration. The major finding of this study showed that a reduction of fertility rate lead to higher economic growth. This implied that even though Malaysia will face aging society by 2020, the economic growth is still stable and can increase by investing more on human capital.
This study aims to analyze the development trend of the manufacturing industry transformation and upgrading in the Guangdong-Hong Kong-Macao Greater Bay Area (2008-2018). On the basis of synergetics, the order parameter method of factor analysis is used to study these factors. The results show that: (1) There are five slow variable factors, such as intelligent manufacturing industry, technological innovation, scale agglomeration, market demand, and fixed asset investment, which are important power sources of the transformation and upgrading of the manufacturing industry in Greater Bay Area. The development of these factors is relatively mature, and they cooperate with each other. (2) Similar to a fast variable of manufacturing development ecology, green development is an important coordinating factor in removing bottlenecks. Finally, suggestions for the development of the transformation and upgrading of the manufacturing industry are put forward.
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.
Investment funds are growing in Malaysia since people are more knowledgeable about
investments and aware of investment opportunities in order to secure good savings for the
future. These investments include unit trusts, gold, fixed deposits, stock prices and property
investments. It is essential for individuals or organisations to know the value of future share
prices of their investment portfolio in order to predict the profit or loss in the future. The
purpose of study is to identify the best duration of historical data and forecast days in order
to accurately forecast share prices. The study uses Geometric Brownian Motion model in
forecasting share prices of companies in Bursa Malaysia. This study focused on 40 listed
companies in Bursa Malaysia from the top gainers list. It was found that 65 historical days
could forecast the share prices for 21 days accurately.
The presentation of this data focuses on analysing the dynamic role of economic growth, foreign direct investment and financial globalization uncertainty on financial development of selected leading African economies, spanning the year 1970 to 2018, and the data were obtained from world development indicators and global financial development databases. Second generation econometrics techniques were deployed for the analysis. We began with the descriptive and correlation statistics in order to ascertain the normality of the data. Also, homogeneity and cross-sectional dependency tests were carried out to validate the whether or not the data is heterogeneous and depend upon each other across the series. As well, the [3] co-integration and dynamic common correlated effect [1] and pool mean group [2] estimates were applied to confirm the presence of long-run relationship and their effects on the financial development among the sampled countries.
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.
Green finance is inextricably linked to investment risk, particularly in emerging and developing economies (EMDE). This study uses the difference in differences (DID) method to evaluate the mean causal effects of a treatment on an outcome of the determinants of scaling up green financing and climate change mitigation in the N-11 countries from 2005 to 2019. After analyzing with a dummy for the treated countries, it was confirmed that the outcome covariates: rescon (renewable energy sources consumption), population, FDI, CO2, inflation, technical corporation grants, domestic credit to the private sector, and research and development are very significant in promoting green financing and climate change mitigation in the study countries. The probit regression results give a different outcome, as rescon, FID, CO2, Human Development Index (HDI), and investment in the energy sector by the private sector that will likely have an impact on the green financing and climate change mitigation of the study countries. Furthermore, after matching the analysis through the nearest neighbor matching, kernel matching, and radius matching, it produced mixed results for both the treated and the untreated countries. Either group experienced an improvement in green financing and climate change mitigation or a decrease. Overall, the DID showed no significant difference among the countries.
In this modern era, the global warming issue has been on the front burner of almost all countries including Malaysia. This study utilizing time series data spanning from 1970 to 2018. To this end, a linear and nonlinear autoregressive distributed lag model was conducted to reveal the foreign direct investment-growth-environment nexus. The conclusion validates the existence of the pollution haven hypothesis in Malaysia. Specifically, the empirical results of the linear autoregressive distributed lag model indicate that foreign direct investment and real gross domestic product have a significant positive impact on CO2 emission while carbon damage cost and the interaction term of foreign direct investment and carbon damage cost have a negative impact in the long run and short run. To find the asymmetric behavior of the foreign direct investment our study employed a nonlinear autoregressive distributed lag model. The findings confirmed the asymmetry association of foreign direct investment with CO2 emission. Interestingly, our results of the interaction term in both models are significant with a negative sign that shows the mediating effect of carbon damage cost that converts the positive effect of foreign direct investment on CO2 emission to negative. Thus, it is vital to reinforce the use of significant regulation as the Malaysian economy opens up to attract more foreign direct investment.
Present climate change consists of global warming that is caused by the emission of greenhouse gases, generally carbon dioxide. The study examines the pollution haven, pollution halo, and environmental Kuznets curve for a number of Asian countries during the period of 1985 to 2020. Outcomes suggest that urbanization, gross domestic product per capita, energy consumption, and foreign direct investment inflow have positive effects, while gross domestic product square, foreign direct investment square, and tourism have negative effects on emissions of carbon dioxide. Furthermore, findings support the validity of the environmental Kuznets curve, pollution haven, and pollution halo hypothesis for the selected Asian countries. We also find robust results of rationality of the environmental Kuznets curve hypothesis for Pakistan, Bangladesh, India, China, Indonesia, Korea, Japan, Malaysia, Vietnam, and Singapore; of pollution haven hypothesis for Bangladesh, China, Indonesia, Japan, Pakistan, and Singapore; and of pollution halo hypothesis for Bangladesh, China, Indonesia, Japan, Pakistan, and Singapore.
The BRICS nations-Brazil, Russia, India, China, and South Africa-have grown significantly in importance over the past few decades, playing a vital role in the development and growth of the global economy. This expansion has not been without cost, either, since these countries' concern over environmental deterioration has risen sharply. Both researchers and decision-makers have focused a lot of attention on the connection between economic growth and ecological sustainability. By using nonlinear autoregressive distributed lag (NARDL) approach, the complex relationships were analyzed between important economic indicators-such as gross domestic product (GDP), ecological innovations (EI), energy consumption (ENC), institutional performance (IP), and trade openness (TOP)-and their effect on carbon emissions and nitrous oxide emissions in the BRICS countries from 1990 to 2021, this study seeks to contribute to this important dialog. Principal component analysis is formed for technological innovations and institutional performance using six (ICT service exports as a percentage of service exports, computer communications as a percentage of commercial service exports, fixed telephone subscriptions per 100 people, internet users as a percentage of the population, number of patent applications, and R&D expenditures as a percentage of GDP) and twelve (government stability, investment profile, socioeconomic conditions, internal conflict, external conflict, military in politics, control of corruption, religious tensions, ethnic tensions, law and order, bureaucracy quality, and democratic accountability) distinct indicators, respectively. The results of nonlinear autoregressive distributed lag estimation show that increase in economic growth would increase carbon dioxide and nitrous oxide emissions. The positive and negative shocks in trade openness have positive and significant impact on carbon dioxide and nitrous oxide emissions in BRICS countries. Furthermore, the positive shock energy consumptions have positive and significant effect on Brazil and India when carbon dioxide and nitrous oxide emissions are used. However, EKC exists in BRICS countries when carbon dioxide and nitrous oxide emissions are used. According to long-term estimation, energy consumption and technological innovations in the BRICS countries show a strong and adverse link with nitrous oxide and a favorable relationship with carbon dioxide emissions. In the long run, environmental indicators are seen to have a major and unfavorable impact in BRICS nations. Finally, it is proposed that BRICS nations can assure environmental sustainability if they support creative activities, enhance their institutions, and support free trade policies.
In the wake of various catastrophic consequences of climate change, Malaysia, a rapidly developing economy, is also inevitably experiencing environmental degradation that merits prompt and serious attention from policymakers and its government. Hence, this study simultaneously highlights the short and long-run dynamic connections between carbon emission in Malaysia and the trio of corruption levels, foreign investment inflow, and trade liberalization. The study also controls for a combination of other factors including energy use, GDP, and urbanization. A robust empirical analysis was conducted on time series observations for the country based on the recent Dynamic ARDL simulation. It was observed that Malaysia's per capita pollution levels significantly reduces based on the corruption perception levels during the sampling period while the economic expansion's effect on emission levels is positive. Additionally, urbanization, trade levels and energy use all aggravate the emission levels. On the other hand, although FDI poses an insignificant environmental damage in the short run, its environmental sustainability enhancement roles were supported by its long-run negative impacts on carbon emission. Lastly, the EKC was established and as such, essential policy directions were provided for stakeholders in the rapidly emerging Malaysian economy.
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 rapid development of live-streaming e-commerce has driven billions of sales revenues and made customers' purchase intention a life-and-death issue for sellers. This study examines the influencing factors of customers' purchase intention from a value perspective by adopting and extending the Theory of Consumption Values (TCV). We also incorporated streamer popularity as a moderating variable to reveal its significant impact on live-streaming e-commerce. This study collected 457 valid online questionnaires from Chinese live-streaming e-commerce users. Our findings show that five of six consumption values, namely functional, social, emotional, conditional, and self-gratification value, are significant drivers of purchase intention. In addition, streamer popularity has strengthened the influence of functional, social, emotional, and self-gratification value on purchase intention. This study deepens the current understanding of live-streaming and customer value research by establishing and validating a comprehensive research model, and reveals the decisive role of multi-dimensional value and streamer popularity in live-streaming industry. The research findings could guide live-streaming merchants to increase sales by reallocating their resources to different consumption values and optimising their investment strategy in popular streamers.
President Obama of the United States of America announced this April the Brain Research Through Advancing Innovative Neurotechnologies (BRAIN for short) investment, while Professor Henry Markram's team based in the European Union will spend over a billion euros on the Human Brain Project, breaking through the unknowns in the fifth science of the decade: Neuroscience. Malaysia's growth in the same field needs to be augmented, and thus the Universiti Sains Malaysia's vision is to excel in the field of clinical brain sciences, mind sciences and neurosciences. This will naturally bring up the level of research in the country simultaneously. Thus, a center was recently established to coordinate this venture. The four-year Integrated Neuroscience Program established recently will be a sustainable source of neuroscientists for the country. We hope to establish ourselves by 2020 as a global university with neurosciences research as an important flagship.