Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic?
Malaysia was the only nation that provided moratorium on loan repayment in a blanket basis during the global pandemic. Thus, this study examines the whether moratorium has a contractionary or an expansionary impact from the perspective of loan repayment towards the volatility of banking stock prices...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Malaysia Sabah
2024
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| Online Access: | https://eprints.ums.edu.my/id/eprint/42681/1/FULL%20TEXT.pdf |
| _version_ | 1825716080322019328 |
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| author | Azmi Majid Rozilee Asid Lim, Thien Sang Zaiton Osman |
| author_facet | Azmi Majid Rozilee Asid Lim, Thien Sang Zaiton Osman |
| author_sort | Azmi Majid |
| collection | UMS |
| description | Malaysia was the only nation that provided moratorium on loan repayment in a blanket basis during the global pandemic. Thus, this study examines the whether moratorium has a contractionary or an expansionary impact from the perspective of loan repayment towards the volatility of banking stock prices listed in Bursa Malaysia. The Exponential GARCH (EGARCH) was employed with daily data from 2 January 2019 to 31 December 2021. The empirical findings showed that the loan-repayment moratorium induced a positive shock to the volatility of Hong Leong Bank, Public Bank, RHB Bank, and Alliance Bank. However, all these banks exhibit a leverage effect, and negative shocks were more pronounced towards their stock price volatility during the moratorium implementation. The findings were crucial for investors and authorities to understand the impact of a moratorium on the banks towards the stock price. |
| first_indexed | 2025-03-05T01:35:34Z |
| format | Article |
| id | ums.eprints-42681 |
| institution | Universiti Malaysia Sabah |
| language | English |
| last_indexed | 2025-03-05T01:35:34Z |
| publishDate | 2024 |
| publisher | Penerbit Universiti Malaysia Sabah |
| record_format | dspace |
| spelling | ums.eprints-426812025-01-17T06:44:54Z https://eprints.ums.edu.my/id/eprint/42681/ Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? Azmi Majid Rozilee Asid Lim, Thien Sang Zaiton Osman HG4001-4285 Finance management. Business finance. Corporation finance RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection Malaysia was the only nation that provided moratorium on loan repayment in a blanket basis during the global pandemic. Thus, this study examines the whether moratorium has a contractionary or an expansionary impact from the perspective of loan repayment towards the volatility of banking stock prices listed in Bursa Malaysia. The Exponential GARCH (EGARCH) was employed with daily data from 2 January 2019 to 31 December 2021. The empirical findings showed that the loan-repayment moratorium induced a positive shock to the volatility of Hong Leong Bank, Public Bank, RHB Bank, and Alliance Bank. However, all these banks exhibit a leverage effect, and negative shocks were more pronounced towards their stock price volatility during the moratorium implementation. The findings were crucial for investors and authorities to understand the impact of a moratorium on the banks towards the stock price. Penerbit Universiti Malaysia Sabah 2024 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/42681/1/FULL%20TEXT.pdf Azmi Majid and Rozilee Asid and Lim, Thien Sang and Zaiton Osman (2024) Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? Malaysian Journal of Business and Economics (MJBE), 11 (2). pp. 1-16. https://doi.org/10.51200/mjbe.v11i2.5784 |
| spellingShingle | HG4001-4285 Finance management. Business finance. Corporation finance RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection Azmi Majid Rozilee Asid Lim, Thien Sang Zaiton Osman Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? |
| title | Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? |
| title_full | Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? |
| title_fullStr | Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? |
| title_full_unstemmed | Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? |
| title_short | Does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic? |
| title_sort | does the implementation of a moratorium bring positive shock to the bank stock price amidst the global pandemic |
| topic | HG4001-4285 Finance management. Business finance. Corporation finance RA648.5-767 Epidemics. Epidemiology. Quarantine. Disinfection |
| url | https://eprints.ums.edu.my/id/eprint/42681/1/FULL%20TEXT.pdf |
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