Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks
Without doubt, higher performance is the ultimate objective of any business entity while minimizing the risk and informing the investors the transparent information of the business. In this paper we show a new way of thinking that willfulfill the ultimate interests of the banks due to the efforts...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Contemporary Research Center Australia
2013
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/31263/1/Simultaneous_relationship_among_market_performance_risk_disclosure_quality.pdf |
| _version_ | 1796878133651046400 |
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| author | Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan |
| author_facet | Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan |
| author_sort | Htay, Sheila Nu Nu |
| collection | IIUM |
| description | Without doubt, higher performance is the ultimate objective of any business entity while
minimizing the risk and informing the investors the transparent information of the business. In this
paper we show a new way of thinking that willfulfill the ultimate interests of the banks due to the
efforts of management such as being higher market value of the firms, taking less risk and providing
higher level of disclosure for the stakeholders in general and the shareholders, in particular. We use
simultaneous relationship among market performance, risk and disclosure quality of twelve
Malaysian listed banks over a period of ten years from 1996 until 2005. Tobin’Q, standard
deviation of monthly stock return and weighted disclosure score are analyzed. Three theories,
namely, signaling theory, risk and return theory and market discipline theory are tested and only
market discipline theory is found to be significant indicating that banks are highly regulated
compared to other industries, especially in terms of risk factors and information disclosure. |
| first_indexed | 2024-03-05T23:17:11Z |
| format | Article |
| id | oai:generic.eprints.org:31263 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T23:17:11Z |
| publishDate | 2013 |
| publisher | Contemporary Research Center Australia |
| record_format | dspace |
| spelling | oai:generic.eprints.org:312632020-11-02T01:15:28Z http://irep.iium.edu.my/31263/ Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan HG1501 Banking Without doubt, higher performance is the ultimate objective of any business entity while minimizing the risk and informing the investors the transparent information of the business. In this paper we show a new way of thinking that willfulfill the ultimate interests of the banks due to the efforts of management such as being higher market value of the firms, taking less risk and providing higher level of disclosure for the stakeholders in general and the shareholders, in particular. We use simultaneous relationship among market performance, risk and disclosure quality of twelve Malaysian listed banks over a period of ten years from 1996 until 2005. Tobin’Q, standard deviation of monthly stock return and weighted disclosure score are analyzed. Three theories, namely, signaling theory, risk and return theory and market discipline theory are tested and only market discipline theory is found to be significant indicating that banks are highly regulated compared to other industries, especially in terms of risk factors and information disclosure. Contemporary Research Center Australia 2013-07 Article PeerReviewed application/pdf en http://irep.iium.edu.my/31263/1/Simultaneous_relationship_among_market_performance_risk_disclosure_quality.pdf Htay, Sheila Nu Nu and Salman, Syed Ahmed and Sufian, Fadzlan (2013) Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks. International Journal of Education and Research, 1 (7). pp. 1-16. ISSN 2201-6333 E-ISSN 2201-6740 http://www.ijern.com/journal/July-2013/19.pdf |
| spellingShingle | HG1501 Banking Htay, Sheila Nu Nu Salman, Syed Ahmed Sufian, Fadzlan Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks |
| title | Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks |
| title_full | Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks |
| title_fullStr | Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks |
| title_full_unstemmed | Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks |
| title_short | Simultaneous relationship among market performance, risk and disclosure quality: empirical evidence from Malaysian listed banks |
| title_sort | simultaneous relationship among market performance risk and disclosure quality empirical evidence from malaysian listed banks |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/31263/1/Simultaneous_relationship_among_market_performance_risk_disclosure_quality.pdf |
| work_keys_str_mv | AT htaysheilanunu simultaneousrelationshipamongmarketperformanceriskanddisclosurequalityempiricalevidencefrommalaysianlistedbanks AT salmansyedahmed simultaneousrelationshipamongmarketperformanceriskanddisclosurequalityempiricalevidencefrommalaysianlistedbanks AT sufianfadzlan simultaneousrelationshipamongmarketperformanceriskanddisclosurequalityempiricalevidencefrommalaysianlistedbanks |