nep-sea New Economics Papers
on South East Asia
Issue of 2017‒04‒30
twenty-two papers chosen by
Kavita Iyengar
Asian Development Bank

  1. The Impact of Social Safety Net Scholarships Program to School Dropout Rates in Indonesia: The Intention-To-Treat Analysis By Kharisma, Bayu; Satriawan, Elan; Arsyad, Lincolin
  2. Comportamiento oligopólico en el Mercado Mundial de Aceite de Palma 1961-2004 By Carmen E. Ocampo López; Luz A. Saumeth De Las Salas; Jorge L. Navarro España
  3. One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime By Quoc-Anh Do; Kieu-Trang Nguyen; Anh N. Tran
  4. The Multiple Effects of Child Health Insurance in Vietnam By Dang, Thang
  5. The Economic Effects of Labor Force Enhancement in the Asia-Pacific Region by Trade Liberalization By Sung , Hankyoung
  6. Mathematical Thinking Undefended on The Level of The Semester for Professional Mathematics Teacher Candidates By Toheri, Toheri; Winarso, Widodo
  7. Evaluation the Impact of Specific Risk Factors on Inventory Turnover and Macroeconomics: Evidence from KUB Malaysia Sdn Bhd By Sylvester Andreas, Flora Kumang
  8. Safe Haven Currency and Market Uncertainty: Yen, renminbi, dollar, and alternatives By MASUJIMA Yuki
  9. The Role Of Corporate Governance And Its Impact On Risk And Firm Performance Of Real Estate Industry: Amanahraya Reit By Mohamad, Wahidah
  10. Financial Risk and Performance: Empirical Evidence from OCBC Bank (Malaysia) Berhad By Abdul Karim, Muhammad Zahisyam
  11. WTO Discussions on Technical Barriers to Trade and Implications for Asia-Pacific Regional Economic Integration By Nam , Sang-Yirl
  12. The Relationship Between Hong Leong Bank’s Performance with Leverage and Inflation By Rosli, Aini Rafiqah
  13. The acceptance of a protected area and the benefits of sustainable tourism: In search of the weak link in their relationship By Sibylle Puntscher; Duc Tran Huy; Janette Walde; Ulrike Tappeiner; Gottfried Tappeiner
  14. Regional and global financial safety nets: the recent European experience and its implications for regional cooperation in Asia By Zsolt Darvas
  15. The Relationship of RHB Bank Berhad’s Profitability with Leverage and Size (Total Asset) By Sofi, Farah Nuramalina
  16. Performance And Risk: Empirical Evidence From Rhb Bank By Hashim, Nur Athira
  17. Paths and Strategies Towards the FTAAP: Linking Integration and Inclusive Growth By Choi , Byung-il
  18. Regional Financial Cooperation of SMEs' Financing in the Asia-Pacific: Lessons from the EU By Seo , Eunsook
  19. The Performance and Risk of Heineken Malaysia Berhad By Song, Wei Ying
  20. Performance and Size of Fraser & Neave Holdings Bhd (F&N) By Othaman, Ridhuan
  21. A Welfare Economic Interpretation of FRAND By Jens Leth Hougaard; Chiu Yu Ko; Xuyao Zhang
  22. Performance and Risk: Empirical Evidence from Petroliam Nasional Berhad (PETRONAS) By Nayan, Norma

  1. By: Kharisma, Bayu; Satriawan, Elan; Arsyad, Lincolin
    Abstract: This study aims to investigate the role of Indonesia’s Social Safety Net Scholarships Program to the school dropout rates in basic education in Indonesia using Indonesian Family Life Survey (IFLS) and the Intention-to-treat (ITT) analysis. Randomized controlled trials often suffer from two major complications, i.e., noncompliance and missing outcomes. One potential solution to this problem is a statistical concept called intention-to-treat (ITT) analysis. One of the challenges of estimating the effect of the JPS program is the non-random allocation of the scholarships. The results showed that the JPS scholarship received by boys and girls per 100 children is proven to be effective in reducing the school dropout rates in basic education, given that levels of education are very vulnerable to dropping out of school as a result of the impact of the economic crisis, particularly in junior secondary school. Meanwhile, the JPS scholarships received by boys more effective to reduce school dropout rates than girls in reducing the school dropout rates, considering that boys are more involved during the economic crisis. The findings were the same in Java and Bali that the average number of boys per 100 children who received JPS scholarship has shown a more significant share in reducing the total dropout number compared to those who are outside the Java and Bali areas. Thus, it will reduce the households that tried to offset the impact of the economic crisis with a variety of coping strategies, especially using boy’s child labor in Java and Bali. Although the JPS scholarship effectively reduces the school dropout rates in basic education, but the influence is still felt inadequate. Therefore, the government needs to fix the target criteria for scholarships recipients to be more accurate and on target with the latest data update. This is important because accurate targeting will determine the effectiveness of the program. Furthermore, it has poor selection criteria carried out by the committee schools, therefore, it needs to be fixed in order to avoid any irregularities.
    Keywords: Social Safety Net Scholarships Program, School Dropout Rates, IFLS, ITT
    JEL: I21 I28
    Date: 2017–01
  2. By: Carmen E. Ocampo López; Luz A. Saumeth De Las Salas; Jorge L. Navarro España
    Abstract: El mercado de aceite de palma ha adquirido una dinámica alta en las décadas recientes. Ha sido tradicionalmente dominado por Malasia e Indonesia quienes producen más del 75% del total mundial. Por medio de una regresión de datos aparentemente no relacionados (seemingly unrelated regression, SUR) con estadísticas entre 1961 y 2004, se hallaron ecuaciones de demanda para analizar el comportamiento oligopólico de estos países en dicho mercado. Los resultados indican que en el período analizado, los dos países habrían estado siguiendo un comportamiento, líder (Malasia)- seguidor (Indonesia), con una tendencia a terminar asumiendo conductas tipo Cournot, repartiéndose al mercado por partes iguales.
    Keywords: Aceite de palma; Malasia; Indonesia; Oligopolio.
    JEL: D43 F14 L11 L13 Q11
    Date: 2016–06–30
  3. By: Quoc-Anh Do (Département d'économie); Kieu-Trang Nguyen (London School of Economics and Political Science); Anh N. Tran (Indiana University)
    Abstract: We study patronage politics in authoritarian Vietnam, using an exhaustive panel of ranking officials from 2000 to 2010 to estimate their promotions’ impact on infrastructure in their hometowns of patrilineal ancestry. Native officials’ promotions lead to a broad range of hometown infrastructure improvement. Hometown favoritism is pervasive across all ranks, even among officials without budget authority, except among elected legislators. Favors are narrowly targeted towards small communes that have no political power, and are strengthened with bad local governance and strong local family values. The evidence suggests a likely motive of social preferences for hometown.
    Keywords: Favoritism; Patronage; Authoritarian regime; Political connection; Hometown; Infrastructure; Distributive politics
    JEL: O12 D72 H72
    Date: 2016
  4. By: Dang, Thang
    Abstract: This paper estimates multiple effects of tremendous expansion in health insurance coverage for children on medical services utilizations for both children and parents by focusing on Free Care for Children Under Six, a child health insurance program that provides free access to health care practices for children under 6 in Vietnam. Using a regression discontinuity design, the paper finds that child health insurance has considerable positive effects on children’s health care uses whereas it reduces parental health care utilization for some outcomes. In particular, child health health insurance increases the probabilities of public inpatient visit and private outpatient visit by 22.3% and 33% respectively while it rises the frequencies of public inpatient visits and private outpatient visits by 0.32 times and 2.24 times respectively. In contrast, child health insurance reduces a mother’s probabilities of public inpatient visit and public outpatient visit by 32.6% and 27% respectively, number of public inpatient visits by 0.41 times. Also, paternal impacts of child health insurance consists of a 23.2% reduction in the probability of private outpatient visit and a 1.01 time decrease in the frequency of private outpatient visits. The paper significantly provides a more insightful understanding of various impacts of a health policy on health care utilization from developing countries.
    Keywords: Child health insurance; health care utilization; regression discontinuity; Vietnam
    JEL: I12 I13 I18
    Date: 2017–04–19
  5. By: Sung , Hankyoung (University of Seoul)
    Abstract: This paper uses the most recent Global Trade Analysis Project (GTAP) DB version 9 and a recursive dynamic computable general equilibrium model (CGE) to analyze the economic effect of enhancement in labor productivity that trade liberalization has in the APEC. In particular, unlike the previous studies that apply tariff reduction, this paper focuses on the changes in labor productivity reported by Ahn et al. (2016). The results show an increase in the real GDP of countries with gains in labor productivity. In particular, the results of this study indicate that the benefits of trade liberalization would be even larger for developed countries with a similar level of gains in labor productivity. It is also suggested that the efficiency of production structure or scale of economy may work for developed economies. In conclusion, this paper suggests another reason to pursue trade liberalization within in the APEC region.
    Keywords: Labor Productivity; Dynamic CGE Model; Trade Liberalization; Real GDP
    Date: 2016–11–30
  6. By: Toheri, Toheri; Winarso, Widodo
    Abstract: Mathematical thinking skills are very important in mathematics, both to learn math or as learning goals. Thinking skills can be seen from the description given answers in solving mathematical problems faced. Mathematical thinking skills can be seen from the types, levels, and process. Proportionally questions given to students at universities in Indonesia (semester I, III, V, and VII). These questions are a matter of description that belong to the higher-level thinking. Students choose 5 of 8 given problem. Qualitatively, the answers were analyzed by descriptive to see the tendency to think mathematically used in completing the test. The results show that students tend to choose the issues relating to the calculation. They are more use cases, examples and not an example, to evaluate the conjecture and prove to belong to the numeric argumentation. Used mathematical thinking students are very personal (intelligence, interest, and experience), and the situation (problems encountered). Thus, the level of half of the students are not guaranteed and shows the level of mathematical thinking.
    Keywords: Mathematical Thingking, Personal, Situation
    JEL: I2 I20 I21 I24 I29
    Date: 2017–04–17
  7. By: Sylvester Andreas, Flora Kumang
    Abstract: Business companies may face a number of speculative financial risks. Successful in every firms based on how they manage the financial risks that are exposures to lose or profit. This study issue to identify the liquidity, a macroeconomic phenomenon and inventory turnover in KUB Malaysia Sdn Bhd. This study was according to 5 years period from year 2011 to 2015. The data were taken from annual report that are listed in Bursa Malaysia. Liquidity ratios and inventory turnover ratio are measured by using certain formulae. We can see the significantly between quick ratio and inventory turnover in descriptive results. A higher value of quick ratio indicates a higher degree of liquidity. (Ali, 2005) found that liquidity adds to number of disappointment in Islamic banks and ordinary banks alike in spite of having admittance to outer liquidity of traditional banks. Thus, a higher value of inventory ratio indicates that inventory can be sold and replaced more frequently. The data was conducted by using regression and bivariate correlation.
    Keywords: Liquidity, macroeconomics, inventory turnover
    JEL: E0 E02 E03 G1 G2 G3 G33
    Date: 2017–04–10
  8. By: MASUJIMA Yuki
    Abstract: This paper investigates the relationship between market uncertainty and exchange rate movements of safe haven currencies that tend to appreciate during the risk-off episodes. A safe haven index—the tendency of currency movements to a change in market uncertainty as measured by the Chicago Board Options Exchange (CBOE)'s volatility index (VIX)—are calculated to assess if a currency has a safe haven tendency. The results indicate that the yen is a safe haven currency and its status is robust. The offshore traded renminbi (CNH) has a vulnerable status to the U.S. dollar and the yen, while having lost its safe haven status to the euro since mid-2014. The won, rupiah, and Singapore dollar tend to be vulnerable. Higher market uncertainty with policy swings may increase safe haven demand for alternative assets such as gold and bitcoin, but not substituting for the yen and the dollar due to limited liquidity. Safe haven gauges help explain the uncovered interest rate parity puzzle associated with carry trade. The implication from the results suggests the yen's strength driven by its safe haven status may slow down the post-crisis recovery via exports, masking the vulnerability of government finance with massive monetary easing. The CNH's shift to a vulnerable status could accelerate capital outflows, supporting export-driven growth. The yen's safe haven status would help balance capital flows within Asia, contributing to post-crisis economic recovery in the area.
    Date: 2017–03
  9. By: Mohamad, Wahidah
    Abstract: This study examines the performance of Amanahraya Real Estate Investment Trusts (ARREIT) with risk factor and macroeconomic factor towards profitability performance. The information from annual report of ARREIT starting from 2011-2015. This study can assist investors, regulatory body, fund managers and academics to make a better informed investment decision on Malaysia REITs. This study has provided interesting and important information and insights into the performance of Malaysia REITs. There are internal and external factors which are return on assets, return on equity, return on investment, current ratio, total assets turnover and debt ratio.
    Keywords: Credit risk, liquidity, profitability and macroeconomics.
    JEL: G3
    Date: 2017–04–19
  10. By: Abdul Karim, Muhammad Zahisyam
    Abstract: Banks are only one part of a vast financial system of markets and institution that circle the globe. Malaysia have resulted to positive outcomes for the financial system for the recent developments in the banking sector. Today, the financial sector has witnessed a revolution from the traditional role of being an enabler of economic growth to turn out to be a vital source for its own growth and expansion. This paper examines the factors affecting risk and performance in the banking institution and identify key factors influencing risk in bank operation in Malaysia.
    Keywords: banking institutions, risk, performance, profitability
    JEL: G2 G21
    Date: 2017–04–16
  11. By: Nam , Sang-Yirl (Korea Information Society Development Institute (KISDI))
    Abstract: As tariff barriers, of traditional and typical policy instruments in international trade, have been reduced significantly under preferential trade agreements as well as the multilateral trading system, non-tariff measures (NTMs), especially those of technical barriers to trade (TBT), become more and more important as means to control international trade. This study is to analyze and better understand TBT or more accurately, technical measures. Based on the analysis, it will attempt to identify some implications and ways to reduce TBT or to facilitate international trade, and ultimately contribute to enhancing economic integration in the Asia-Pacific region. The characteristics and trends of technical measures can be best identified and evaluated by the notifications of WTO members according to the Agreement on Technical Barriers to Trade (TBT Agreement), discussions in the WTO TBT Committee - especially specific trade concerns (STCs), and dispute settlement cases in TBT related issues. In fact, the number of TBT notifications have surged as various and comprehensive legitimate objectives of technical regulations were allowed and on other backgrounds since the launch of the WTO in 1995. It is noted, however, that TBT notifications are not regarded as TBT itself but as "potential" TBTs in this study. To analyze the trends and characteristics of TBT measures, this study utilizes the information in the WTO TBT notifications, STCs, and dispute settlement cases related to the TBT Agreement. Focus will be on the APEC member economies. Some trends and characteristics of TBT measures by the objective of regulation, by commodity, and by the country notified (e.g., developed and developing economies) will be analyzed and identified. Some of implications from the results are as follows. Due to the fact that technical measures are mostly domestic regulations but controlled at the border to restrict market access, there needs to be consultation, cooperation and harmonization of regulation rather than competition and retaliation. There also needs to be developed a system for information and experience exchange, capacity building including on development and implementation of standards, technical regulation, and conformity assessment procedures, especially for developing economies. APEC is well positioned to lead international cooperation in TBT with its diverse members and related specific institutions.
    Keywords: Technical Barriers to Trade; TBT; NTMs; APEC; Asia-Pacific Region
    JEL: F13 F53 F55 O19
    Date: 2015–12–18
  12. By: Rosli, Aini Rafiqah
    Abstract: This paper are for recognize the relationship between risk and performance of Hong Leong Bank. Hong Leong Bank is one of the bank that have a good reputation in banking industry at Malaysia. Thus, it is important to shareholder knows the type of risk that faced by management of bank. The focused risk is leverage and external factor that are inflation by using profitability as the bank’s indicator which is by using ROA and current ratio. Aside that, the external factor such as inflation also give an impact to the performance of bank. The leverage and inflation are significant in business due to the direct and indirect relationship to the profitability. Therefore, this paper further examines if management have taken a serious step in maintaining the risk that will give any reflect to the profitability.
    Keywords: bank’s performance ;leverage ; inflation.
    JEL: A10 A12 A13 D4 D49 E6 E66 G1 G10 G2 G21 G3 G32
    Date: 2017–03–30
  13. By: Sibylle Puntscher; Duc Tran Huy; Janette Walde; Ulrike Tappeiner; Gottfried Tappeiner
    Abstract: Sustainable tourism is seen as a major development opportunity for regions with pristine nature and biodiversity hotspots, particularly in developing countries. The economic advantages of sustainable tourism are supposed to convince local persons that use restrictions and regulations set within a protected area (PA) are necessary and beneficial. Nevertheless, local persons are hardly found to positively assess PAs and their environmental protection efforts. This study combines earlier findings on the existence of PAs, their potential for tourism, their restrictions for economic development and the local population’s acceptance of environmental protection into a comprehensive model. Based on a representative survey of 686 people in the Hoang Lien National Park in Vietnam, we analyse the links in the suggested transmission mechanism. The results identify one major bottleneck for the acceptance of a PA: The people indeed acknowledge the economic advantages of a sustainable tourism sector, but do not see themselves as actual beneficiaries. Even if they are already involved in tourism, they feel the main benefits are generated for outside agents, while local persons have to deal with the restrictions imposed. This result has far-reaching implications for successful tourism policy and implementation of protected areas.
    Keywords: Attitudes towards protected area, Sustainable tourism, Economic development, Environmental protection, Hoang Lien National Park, Vietnam
    JEL: Q01 Q26 L83
    Date: 2017–04
  14. By: Zsolt Darvas
    Abstract: This paper compares financial assistance programmes of four euro-area countries (Greece, Ireland, Portugal, and Cyprus) and three non-euro-area countries (Hungary, Latvia, and Romania) of the European Union in the aftermath of the 2007/08 global financial and economic crisis—which were supported by the International Monetary Fund (IMF) and various European financing facilities. These programmes have distinct features compared with assistance programmes in other parts of the world, such as the size of imbalances, financing, unique cooperation of the IMF and various European facilities, and membership of a currency union in the case of euro-area countries. We evaluate the programmes by assessing their success in creating conditions to regain market access, the degree of compliance with loan conditionality, and actual economic performance relative to programme assumptions. We conclude that the rate of compliance with loan conditionality was not a good predictor of programme success and that deviations from gross domestic product programme assumption correlate strongly with fiscal performance and unemployment, highlighting the key role of macroeconomic projections in programme design. While the Troika institutions succeeded in cooperating, there were major disputes among them in some cases, especially related to the assessment of fiscal sustainability and cross-country spillovers. Asian countries can draw several lessons from European experiences, including the coexistence of the IMF and regional safety nets, cooperation issues, systemic spillovers, and social implications of programme design.
    Date: 2017–04
  15. By: Sofi, Farah Nuramalina
    Abstract: This paper aims to recognize the relationship between profitability and performance of RHB Bank Berhad. RHB bank is one of the local bank in Malaysia and the bank was well known in local country. Therefore, knowing the action taken by the management to increase the profitability and the performance of RHB Bank. The focused of this study is leverage and internal factors that are size by indicate the performance and the profitability measurement of the company, such as ROA, ROE, and etc. Aside from the profitability of the bank, size of the company is also considered to have the relationship with performance. Size and leverage are significant in business due to the direct and indirect relationship to profitability, therefore, this paper is to examine if the management have taken an appropriate decision making to increase their asset that will be reflected to the profitability and growth trend of the company.
    Keywords: Keyword: banks’s performance; leverage; Size
    JEL: A1 E5 G1 G17
    Date: 2017–03–30
  16. By: Hashim, Nur Athira
    Abstract: This study will discuss about the relationship of many risks such as credit risk, liquidity risk, operational risk and market risk with the performance of a bank that is RHB Bank. All these factors will be calculated and will be seen about how much will it give effects to the performance of the company. In this paper, I will look for various journals and articles as sources to find about the relationship between the variables and the company’s performance. Besides, I provided descriptive findings of one of the bank in Malaysia and that’s RHB Bank where all the risks will be calculated to the following ratio as non-performing loan ratio will be used to measure the credit risk of the bank, total cash over total assets will be used to measure the liquidity risk of the bank, operating efficiency ratio will be used to measure operating risk and market risk used the rate of inflation, Gross Domestic Product (GDP) and the bank’s return on assets as the variable to measure the market risk. The findings regarding of the relationship of risks and the performance of the company from the journals will be discussed and be related to the descriptive findings from the RHB Bank. Based on the discussion, most of the relationships of all the risks and the performance of the bank are in tally and consistent with the findings calculated for RHB Bank.
    Keywords: Liquidity Risk, Operational Risk, Market Risk, Profitability
    JEL: G0 G3 M0 M1
    Date: 2017–04–17
  17. By: Choi , Byung-il (Ewha Womans University - Graduate School of International Studies (GSIS))
    Abstract: While the pathway to the Free Trade Area of the Asia-Pacific (FTAAP) has been intensely discussed with a focus on its architecture, something has been missing: how to link trade and investment liberalization with inclusive growth of the APEC economies. The APEC economies have been increasingly open to trade and investment, but domestic distortions persist. The consequences have been less beneficial effects of trade and investment liberalization to domestic stakeholders. In particular, less-advantageous minorities have become more vulnerable to external economic shocks. If these failures are not urgently and seriously addressed, political support for further integration towards the FTAAP will continue to weaken. This reckoning has led to this paper. This paper offers policy options to make the FTAAP more conducive to inclusive growth of the APEC economies. Policy proposals are offered in two fronts. At negotiations, a grand compromise between advanced and developing economies should be sought to make negotiations agenda more comprehensive and balanced. Under this grand bargain, protected sectors in advanced economies -- potential exporting sectors for developing economies -- would be opened in exchange for more commitment in new rules by developing economies. To make this grand bargain politically possible, each side should do its homework domestically. Empowering human capital and skill upgrading programs will be urgent and imperative, along with designing more effective trade adjustment assistance programs. To enhance the possibility of achieving this comprehensive and balanced agenda, and to ensure all are on board, a two-track commitment should be designed. At the domestic front, major distortions which have obstructed a more inclusive integration in the past should be urgently corrected. Specifically, policy preference for incumbents should be removed; labor markets should become less rigid; capital markets should be accessible to all; and social safety nets should be strengthened.
    Keywords: Regional Integration; Inclusive Growth; APEC; FTAAP; TPP; RCEP
    JEL: F13 F51 F68
    Date: 2016–11–30
  18. By: Seo , Eunsook (Sangmyung University)
    Abstract: The recent downturn in the global economy is demanding new growth models from APEC members, and SMEs are expected to play a crucial role in raising productivity and in sustaining economic growth by facilitating technological advances, as well as in job creation. Given that SMEs have generally limited access to finance due to information asymmetries and the riskiness of their businesses, public support by government such as credit guarantee schemes (CGS) are a very important tool for supporting SMEs. SMEs at early stages of development (or start-ups) have risk profiles that favor equity financing or financing through the capital market. For this to work, however, the "law of large numbers" must apply. This method of financing is not appropriate for small markets. Therefore it will work best in a developed equity market such as that of the US. When the conditions above do not hold, two alternatives are possible. The first option is to realize the law of large numbers in an inter-temporal way. This gives rise to the need for a policy lending program (or government credit) resembling a typical European-style policy financing scheme. Second option is to expand the financial market. For this to work, establishing universality of contracts through economic integration is necessary. Universality of contracts mean equal protection of property rights for incoming foreigners who enter into contracts in the host country. In this case, capital inflow is also needed from countries outside the integrated economic bloc. EIB (European Investment Bank) aims to implement the EU's SME Initiative through its SME support programs. The European Investment Fund is responsible for allocating SME capital to stimulate the SME sector, on behalf of the EC. The experience of the EU points to the necessity of non-bank financing programme to add to bank financing for SMEs. Thus EIF is also shifting its focus from provision of early-stage guarantees to development of various capital market-based instruments for SMEs. This study ends with suggestions for APEC regarding SME financing policies. First, PCGS (public credit guarantee system) is better in the very early stages of financial cooperation. Second, SME financing policy should include both CGS-style and market-based financing. Third, it is necessary to settle on a definition of SMEs based on unified criteria. Fourth, a PCGS-style support scheme is needed to develop within the APEC framework. Lastly, an equity market-based support system specialized for SMEs should be established. This report also suggests action plans to make an Investment fund centered on SMEs.
    Keywords: SME Financing; Market-based Financing; Public Credit Guarantee; APEC Cooperation
    Date: 2015–12–30
  19. By: Song, Wei Ying
    Abstract: This study explores the overall performance of Heineken Berhad with specific determinants and the macroeconomic determinants on company profitability performance. Return on assets (ROA) is used as a measurement for company profitability while for independent variables, the company specifics determinants (internal factor) are size, operating, liquidity and leverage. While, the macroeconomic determinants (external factor) are gross domestic product (GDP), inflation, unemployment and exchange rate are used to determine the company profitability. The data are obtained from the annual report of Heineken Malaysia Berhad over period of 2001 to 2015 where analyzed by using correlation and regression in SPSS. The findings show the board remuneration has a negative and significant relationship with the ROA, implying that company must have a good set on remuneration policy which will have higher the company profit.
    Keywords: Risk, Profitability, Firm size, Operating, Liquidity, Remuneration and Inflation.
    JEL: G3
    Date: 2017–04–16
  20. By: Othaman, Ridhuan
    Abstract: The main study is to analyze about the overall of the risk and the performance of the Fraser & Neave Holdings Bhd (F&N). All the is get from annual report that get from the Bursa Malaysia. The measurement of the company is used in variety of ratio such as liquidity risk, operational risk, credit risk and financial risk. These ratio is useful to know well about the company.
    Keywords: Risk and performance of the company, profitability and Liquidity.
    JEL: G0 G00 G3 G30 L1 P0
    Date: 2017–03–30
  21. By: Jens Leth Hougaard (Department of Food and Resource Economics, University of Copenhagen); Chiu Yu Ko (Department of Economics, National University Singapore); Xuyao Zhang (Lee Kuan Yew School of Public Policy, National University Singapore)
    Abstract: Setting an industry-wide standard is crucial for information and communication technologies for interoperability, compatibility and efficiency. To minimize holdup problems, patent holders are often required to ex-ante commit to licensing their technologies under Fair, Reasonable and Non-Discriminatory (FRAND) terms. Yet, there is little consensus, in both courtrooms and industries, on the exact meaning of FRAND. We propose a welfare economic framework that enables a precise distinction: fairness in the distribution of royalty payments among patent users, and reasonableness in setting the size of the compensation to the patent holder, where both the size and the distribution of payments are determined in a non-discriminatory way making sure that similar firms are treated similarly. We illustrate our approach in various classic models from industrial organization, and discuss further potential applications.
    Keywords: FRAND-licensing, Fair royalties, Standard setting, Patent, Shapley value
    JEL: D63 K2 L3 L44
    Date: 2017–04
  22. By: Nayan, Norma
    Abstract: The paper aims to recognize the relationship between risk and profit in the company Petroliam Nasional Berhad (PETRONAS). This company is one of the leading companies in oil and gas industry, therefore, knowing the risk taken by the company and their management and the impact on the profit to the shareholder. The main focus in this paper is to recognized risk especially in operational risk, liquidity risk and credit risk while the profit is indicate by using ROA, ROE, Profit Margin Ratio, Debt to Equity Ratio, Debt to Asset Ratio and Interest Coverage Ratio. In addition, the size of the company is considered to have relationship with the risk factor. It involved the total assets and the Malaysian economic outlook looking at the GDP growth, inflation, exchange rate and the unemployment. In addition, Pearson correlation coefficient and significant (1-tailed) are used to find the relationship between the ROA and the 13 items that be as independent variables. The ROE and Profit Margin Ratio are significant in this business due to the direct and indirect relationship to the profitability in the company. In conclusion, this paper takes further examines if the company has taken the appropriate decision in retaining the risk as mention that will reflected to the profitability and the growth of the company.
    Keywords: Keywords: company performance, operational risk, liquidity risk and credit risk, return on asset, return on equity, profit margin ratio, debt to equity ratio, current ratio, quick ratio, cash ratio, interest coverage ratio, GDP, inflation, exchange rate, unemployment.
    JEL: D8 G3 G32
    Date: 2017–04–16

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