Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank

The aftermath of 1997/1998 Asian-financial meltdown, witnessed a significant restructuring of banking sector, resulting in fewer but bigger conglomeration of banks in Malaysia. Banks are now challenged to raise profit to another level in order to be more resilient against any future financial onslau...

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Main Authors: Michael, Tinggi, Shaharudin, Jakpar, Ling, Ling
Format: Article
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/9220/
http://ir.unimas.my/id/eprint/9220/1/DETERMINANTS%20OF%20BANKS%E2%80%99%20BOTTOM%20LINE%20%28abstract0.pdf
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author Michael, Tinggi
Shaharudin, Jakpar
Ling, Ling
author_facet Michael, Tinggi
Shaharudin, Jakpar
Ling, Ling
author_sort Michael, Tinggi
building UNIMAS Institutional Repository
collection Online Access
description The aftermath of 1997/1998 Asian-financial meltdown, witnessed a significant restructuring of banking sector, resulting in fewer but bigger conglomeration of banks in Malaysia. Banks are now challenged to raise profit to another level in order to be more resilient against any future financial onslaught. The need to learn from some of the world best banks should be explored. This empirical study therefore attempts to benchmark the determinants of banks’ bottom line in Malaysia vis-à-vis attributes affecting viability of the same industry in Hong Kong. The domain of the study involves gauging the impact of firm’s size, capital structure, liquidity, managerial efficiency, loans’ size on bottom line enjoyed by banking sector in Malaysia and Hong Kong. The panel data are extracted from the 11 major banks, operating from each country in Malaysia and Hong Kong for period 2002 to 2011. The fixed effect panel found that, bank size, capital structure and loans to customers have strong impact on bank bottom line in Malaysia. In contrast, managerial efficiency improves profit margin in Hong Kong banking sector.
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spelling unimas-92202016-10-21T01:41:51Z http://ir.unimas.my/id/eprint/9220/ Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank Michael, Tinggi Shaharudin, Jakpar Ling, Ling HG Finance The aftermath of 1997/1998 Asian-financial meltdown, witnessed a significant restructuring of banking sector, resulting in fewer but bigger conglomeration of banks in Malaysia. Banks are now challenged to raise profit to another level in order to be more resilient against any future financial onslaught. The need to learn from some of the world best banks should be explored. This empirical study therefore attempts to benchmark the determinants of banks’ bottom line in Malaysia vis-à-vis attributes affecting viability of the same industry in Hong Kong. The domain of the study involves gauging the impact of firm’s size, capital structure, liquidity, managerial efficiency, loans’ size on bottom line enjoyed by banking sector in Malaysia and Hong Kong. The panel data are extracted from the 11 major banks, operating from each country in Malaysia and Hong Kong for period 2002 to 2011. The fixed effect panel found that, bank size, capital structure and loans to customers have strong impact on bank bottom line in Malaysia. In contrast, managerial efficiency improves profit margin in Hong Kong banking sector. Universiti Malaysia Sarawak, (UNIMAS) 2015 Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/9220/1/DETERMINANTS%20OF%20BANKS%E2%80%99%20BOTTOM%20LINE%20%28abstract0.pdf Michael, Tinggi and Shaharudin, Jakpar and Ling, Ling (2015) Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank. International Journal of Business and Society, 16 (1). pp. 133-146. ISSN 1511-6670 http://www.ijbs.unimas.my/content-abstract/all-issues/item/276-determinants-of-banks%E2%80%99-bottom-line-evidence-from-benchmarking-malaysian-and-hong-kong-bank.html
spellingShingle HG Finance
Michael, Tinggi
Shaharudin, Jakpar
Ling, Ling
Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank
title Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank
title_full Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank
title_fullStr Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank
title_full_unstemmed Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank
title_short Determinants Of Banks’ Bottom Line: Evidence From Benchmarking Malaysian and Hong Kong Bank
title_sort determinants of banks’ bottom line: evidence from benchmarking malaysian and hong kong bank
topic HG Finance
url http://ir.unimas.my/id/eprint/9220/
http://ir.unimas.my/id/eprint/9220/
http://ir.unimas.my/id/eprint/9220/1/DETERMINANTS%20OF%20BANKS%E2%80%99%20BOTTOM%20LINE%20%28abstract0.pdf