Journal of Entrepreneurship, Business and Economics

Number 7(2s), 2019

1-6
Contemporary Business Issues in Malaysia: How does this “Tiger Cub” feel today?

Authors: Yashar Salamzadeh, Mirjana Radovic Markovic, Datis Khajeheian

Abstract

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Number of views: 280

Malaysia has played an important role in the economy of South-East Asia in last decades and is among the most successful economies in developing countries of the region. Of course, there are some concerns on the speed of growth, change and economic share of competing economies in this vital economic region. Malaysia has started new initiatives to speed up the process of growth both in economic and human capital dimensions. This is why there is a need to know more about the current status of the business ecosystem of this country. Getting a better and more comprehensive view of the business ecosystem in Malaysia guided us to a broader scope for this special issue. In this special issue, all researchers are invited to submit their research articles in different aspects of Malaysia’s business environment mainly investigating cases in Malaysia.

7-42
The influence of the Determinants and Generation Type on Intention to Retire

Authors: Kan Wen Huey, Rajendran Muthuveloo

Abstract

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Number of views: 316

This is a proactive study to assist the Malaysian Ministry of Education to understand better about factors that associated with the determinants of early retirement among government female secondary school teachers. This paper illustrates the determinants of intention to retire among government female secondary school teachers. These determinants were chosen based on the three faculty of human beings called physical, mental and spiritual. Health and Financial resources represent the physical and mental aspects respectively, while job satisfaction and work performance represent the spiritual aspect. In addition, it elaborates the influence of generation type on the relationship between the determinants and the intention to retire. Two hundred and ninety-two (292) samples were collected using structured questionnaire via convenience sampling technique and analysed with SPSS and PLS-SEM statistical tools. The results indicated that health, financial resource and work performance forms the determinants of intention to retire, while job satisfaction do not. Generation type moderates the relationship between the determinants and intention to retire. These findings provide a proxy of early retirement of the teacher from the job or leaves the job elsewhere for better prospect. This study can be the benchmark for the Malaysian Government-Ministry of Education to address the shortage of manpower at the secondary school level. In addition, the strategic insights and practical knowledge provided by this study can assist the Malaysian Government-Ministry of Education to formulate strategies to manage shortage of teacher at the secondary school and increase to labor force participation of women.

43-77
Corporate Governance and Firm Value: The Moderating Effect of Board Gender Diversity

Authors: Yeoh Siong Chin, Yuvaraj Ganesan, Anwar Allah Pitchay, Hasnah Haron, Ratih Hendayani

Abstract

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Number of views: 606

The purpose of this research is to examine the relationship between corporate governance and firm value. The component of corporate governance is board size, board independence, number of board monitoring committees, risk management committee. Board gender diversity will be introduced in this study as a moderator variable between corporate governance and firm value. This study adopts a quantitative approach and cross-sectional design. A total of 120 top market capitalization was selected for companies listed in Bursa Malaysia and relevant data are extracted from respective companies’ annual reports. Result shows that board size and board independence are positively significant to firm value. However, board monitoring committee and risk management committee do not show any significant relationship with Tobin's Q. Board gender diversity, however, do not function as a moderating role in the relationship of corporate governance and business performance. This study contributes by explaining the relationship between corporate governance and firm value in a developing country. Policymakers and academician will be able to have a better insight into the research and this study pioneer to test the moderating effect of board gender diversity, and the relationship between risk management committee and firm value. Further this paper, able to enhance knowledge and understanding of relevant authority and help them to strategies new policy or standards for listed company.

78-105
Investigating the Factors Affecting Purchase Intention of Muslim Women Towards Halal Cosmetics

Authors: Shaizatulaqma Kamalul Ariffin, Wihdatul Fadhilah Azra, Nabsiah Abdul Wahid, Goh Yen Nee

Abstract

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Number of views: 320

The objective of this study is to examine the relationship between brand awareness, attitude, subjective norms, perceived behavioural control and purchase intention towards halal cosmetics among Muslim women in Indonesia. The questionnaires were distributed to 304 Muslim women at Medan, Banda Aceh, and DKI Jakarta within end of January until early February 2019. To investigate the relationships between factors; the structural equation modelling (SEM-PLS) version 2.0 was used to analysed the data. The finding of this study has found that two components of TPB (attitude, perceived behavioural control) and brand awareness are positively related with purchase intention towards halal cosmetics, while subjective norm is found to be insignificant. The result shows that positive attitude is the most important factor to increase consumer purchase intention toward halal cosmetics. The result of this study provides information to cosmetics’ firm that Muslim women with high brand awareness, attitude and perceived behavioral control will have high purchase intention toward halal cosmetic products. The findings of this study contribute valuable information to scholars, policy makers and firms in order to understand Muslim customers in Indonesia.

106-143
The Growth of Islamic Banks and Increase Its Identity through Institutional Approach

Authors: Shamim Hossain, Shaian Kiumarsi, Wilawan Jansri

Abstract

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Number of views: 316

This study aims to review prior literature on growth of Islamic banks in Bangladesh (IBB) to explain and analyse the role of institutional theoretical approach systematically. This research examines how the growing level of IBB requirements are fulfilled and maintained throughout the banking structure in society. The present study uses a single-case research method and uses semi-structured interviews as the primary data collection. It considers the perspectives of various stakeholder groups in the IBB. In all, 40 participants have participated in this study. In this research, normative aspects of assign institutional theory (IT) are taken into considerations. They vary in their institutional performance and thus have different levels of bias and efficiency. Researchers, therefore, attempt to outline various inadequate information resulting from the common setup in which both incumbents’ structure and banking practices rely on their IT mechanism. The study addresses the structure of the IBB and explains its identity approach, which is one of the important stakeholders. This research proposes a balanced and dominated model of banking practices as a potential solution which increases the institutional identity. This research paper significantly contributes to research on Islamic banking business practices, IT in IBB and banks stakeholders gives a better understanding of the whole growth and identity.

144-178
Three Decades of Budget Deficit and Shock Responses: The Malaysia Case

Authors: Sze-Shin Yew, Tze-Haw Chan

Abstract

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Number of views: 342

Malaysia has experienced budget deficits for the past three decades. The accumulated deficits and public debts have escalated, thus casted doubts on the capacity of fiscal expansion to endure economic growth. Yet, the limited empirical evidences are far from conclusive. This paper examines the Malaysian budget deficit-economic growth nexus during 1980-2018, with other macroeconomics variables (e.g. interest rate, inflation, exchange rate, domestic investment) taken into consideration. To capture the dynamic relationship, a set of comprehensive econometric procedures has been employed, including cointegration, Granger causality, error correction modelling, impulse response function and variance decomposition. Our analysis reveals that budget deficits contributed to economic growth and were bounded together with macroeconomic variables in both the long-run and short run with different magnitudes and shock adjustments. In brief, GDP is negatively linked to budget deficits, foreign exchange rate and interest rate, but positively linked with domestic investment and inflation. In addition, budget deficits exhibited bidirectional causality with domestic investment, and showed unidirectional causal effect on GDP. The finding would suggest that increases of budget deficits and domestic investment promotes economic productivity. Monetary expansion with lower interest rate and exchange rate appreciation would help to correct budget deficits but the impacts are minor, due to less-profound financial deepening. A balancing and well-coordinated public finance policy would help to sustain economic growth.