Does economic freedom fosters banks’ performance? Panel evidence from Malaysia
The present paper provides new empirical evidence on the impact of economic freedom on banks’ performance. The empirical analysis is confined to the Malaysian banking sector during the period of 1999–2007. We find that overall economic freedom and business freedom exerts positive impacts, implying t...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2010
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| Online Access: | http://irep.iium.edu.my/5208/ http://irep.iium.edu.my/5208/1/JCAE13.pdf |
| _version_ | 1848776461274578944 |
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| author | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_facet | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_sort | Sufian, Fadzlan |
| building | IIUM Repository |
| collection | Online Access |
| description | The present paper provides new empirical evidence on the impact of economic freedom on banks’ performance. The empirical analysis is confined to the Malaysian banking sector during the period of 1999–2007. We find that overall economic freedom and business freedom exerts positive impacts, implying that higher (lower) freedom on the activities that banks can undertake and entrepreneurs to start businesses increases (reduces) banks’ profitability. The empirical findings seem to suggest that corruption has a corrosive impact on Malaysian banks’ profitability. Interestingly, the impact of monetary freedom is negative, demonstrating the importance of government intervention in determining the profitability of banks operating in the Malaysian banking sector. |
| first_indexed | 2025-11-14T14:30:27Z |
| format | Article |
| id | iium-5208 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:30:27Z |
| publishDate | 2010 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-52082011-11-03T08:58:59Z http://irep.iium.edu.my/5208/ Does economic freedom fosters banks’ performance? Panel evidence from Malaysia Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking The present paper provides new empirical evidence on the impact of economic freedom on banks’ performance. The empirical analysis is confined to the Malaysian banking sector during the period of 1999–2007. We find that overall economic freedom and business freedom exerts positive impacts, implying that higher (lower) freedom on the activities that banks can undertake and entrepreneurs to start businesses increases (reduces) banks’ profitability. The empirical findings seem to suggest that corruption has a corrosive impact on Malaysian banks’ profitability. Interestingly, the impact of monetary freedom is negative, demonstrating the importance of government intervention in determining the profitability of banks operating in the Malaysian banking sector. Elsevier 2010-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5208/1/JCAE13.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) Does economic freedom fosters banks’ performance? Panel evidence from Malaysia. Journal of Contemporary Accounting & Economics, 6 (2). pp. 77-91. ISSN 1815 5669 http://www.elsevier.com/wps/find/journaldescription.cws_home/720162/description#description DOI: 10.1016/j.jcae.2010.09.003 |
| spellingShingle | HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah Does economic freedom fosters banks’ performance? Panel evidence from Malaysia |
| title | Does economic freedom fosters banks’ performance? Panel evidence from Malaysia |
| title_full | Does economic freedom fosters banks’ performance? Panel evidence from Malaysia |
| title_fullStr | Does economic freedom fosters banks’ performance? Panel evidence from Malaysia |
| title_full_unstemmed | Does economic freedom fosters banks’ performance? Panel evidence from Malaysia |
| title_short | Does economic freedom fosters banks’ performance? Panel evidence from Malaysia |
| title_sort | does economic freedom fosters banks’ performance? panel evidence from malaysia |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/5208/ http://irep.iium.edu.my/5208/ http://irep.iium.edu.my/5208/ http://irep.iium.edu.my/5208/1/JCAE13.pdf |