Prof. Dr. Mansor H. Ibrahim
Qualification:Ph.D.in Economics, Washington University in St. Louis, Missouri, USA . (1996)
Fields/Area of Specialization:Macro/Monetary economics
Prior to joining INCEIF, Prof. Dr. Mansor H. Ibrahim served the Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia (UPM) for three years (2009- 2011) and the Department of Economics, International Islamic University Malaysia for 12 years (1996-2008). He studied at Washington University where he received his A. B. (Economics) in 1990, A.M. (Economics) in 1991 and PhD in Economics in 1996. His research interest includes monetary economics, money and banking, analysis of financial markets and applied econometrics. He currently serves as Deputy President Academic (DPA) of INCEIF and as Dean for School of Graduate and Professional Studies (SGPS).

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Showing results 1 to 20 of 124
  • rolling_regression_analysis_international_transmission_inflation_malaysia_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2009)

  • The paper assesses the transmission of foreign inflationary disturbances for Malaysia. Using quarterly data from 1971 to 2003, we form a four-variable vector error correction model (VECM) consisting of domestic prices, US prices, Ringgit exchange rate and relative interest rate. Apart from the full-sample analysis, recursive and rolling regressions are adopted to examine potential changes in inflation transmission from the US to Malaysia. As a basis for inferences, we rely on the speed of adjustments estimates as well as the significance of lagged first-differenced terms of the VECM. The results unequivocally suggest significant spillover of US inflationary disturbances to Malaysia in...

  • empirical_analysis_real_activity_stock_returns_emerging_market_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2010)

  • The present paper analyzes the role of stock market returns as a predictor of real output for a fast-growing emerging market, Malaysia. In the analysis, forecasting equations for 1-, 2-, 4-, and 8-quarter forecasting horizons based on autoregressive distributed lags framework are adopted. From the estimation, we find evidence that stock market returns do contain predictive ability at short-forecasting horizons, especially at less than 4-quarter horizons. Estimating the forecasting models recursively, we note reduction of out-of-sample forecasting evaluation statistics, namely the mean absolute errors (MAE) and the mean squared forecast errors (MSFE), from those obtained from the simpl...

  • Are_Islamic_banks_suffering_from_a_model_misfit_comparison_with_cooperative_banks_Mansor.pdf.jpg
  • Journal Article


  • Authors: Rosana Gulzar; Mansor H. Ibrahim; Mohamed Ariff Abdul Kareem (2020)

  • For the first time, this study investigates whether, in mimicking conventional banks, Islamic banks have become less stable than their theoretical equivalent: cooperative banks in Europe. Theoretically, the prohibition of interest should have pushed Islamic banks towards mutuality and profit-sharing, which have been argued as stabilising. In practice, however, banks are pushed for growth under a debt-driven commercial banking model, which is not only antithetical to the Shariah but is also destabilising. This may explain why empirical findings are still divergent in Islamic banking stability studies. Our study employs the generalised method of moments (GMM) system to compare the stabi...

  • asymmetry_mean-reverting_behavior_asean_stock_market_returns_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2011)

  • The present paper characterizes the mean-reverting behavior of six ASEAN markets - Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – using an autoregressive exponential GARCH-in mean model and daily data from August 2000 to May 2010. The results indicate fast speed of mean-reversion in the returns of these markets but with quite distinct patterns of return dynamics. The evidence seems strong to suggest asymmetric mean reversion and overreaction during market downturns in the Indonesian market. The Vietnamese market exhibits most persistent return autocorrelation with some evidence pointing to higher persistence during market downturns. However, there is no evide...

  • bail out was a success_mansor_perkem.pdf.jpg
  • Academic proceeding


  • Authors: Mohd Adib Ismail; Mansor H. Ibrahim; Mohammed Yusoff; Mohd-Pisal Zainal (2010)

  • This paper is aimed to examine the impact of bail-out policy carried out following the financial crisis which hit the Malaysian economy some years ago. Using panel estimation methods, this study tries to analyze the relationship between firms‟ investments and their cash flows before and after the crisis period. Theoretically, the relationship becomes tight due to the crisis. This tight relationship indicates the existence of severe financial constraints faced by existing firms. Such relationship is on the contrast to the loose relationship prior the crisis when the financial market was liberalized through various deregulations including the interest rates deregulation. However, to com...

  • the_bank_lending_channel_monetary_policy_transmission_dual_banking_system_mansoribrahim.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2017)

  • This paper examines the impact of monetary policy on bank lending in a dual banking system, i.e. Malaysia. Making use of an unbalanced panel data set of 38 Islamic and conventional banks covering mostly 2001-2014, we find evidence that variations in monetary policy affect lending growth of Islamic banks and, to some extent, conventional banks. The results further reveal that, in comformity with studies using aggregate Islamic financing data, the Islamic financing growth reacts more strongly to monetary policy changes.

  • Bank_lending_deposits_and_risk_taking_in_times_of_crisis_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Syed Aun Raza Rizvi (2018)

  • In this study, we conduct a panel analysis of Islamic and conventional banks to ascertain whether Islamic banks are able to sustain financing supply and whether its growth is higher than conventional bank lending growth in times of stress. For concreteness, we also assess whether the sustained financing supply of Islamic banks is justified by a concomitant increase in Islamic deposit growth and is not linked to excessive risk taking. Utilizing a panel sample of 25 Islamic banks and 114 conventional banks from 10 dual-banking countries, we observe sustained financing supply by Islamic banks but significant reduction in the lending growth by conventional banks during the crisis period. ...

  • bank_lending_macroeconomic_conditions_financial_uncertainty_evidence_malaysia_eskandar_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Mohamed Eskandar Shah Mohd Rasid (2012)

  • In this paper, we examine the interrelations between bank lending, macroeconomic conditions and financial uncertainty for an emerging economy, Malaysia. Adopting time series techniques of cointegration, causality and vector autoregressions (VARs), we arrive at the following main results. We note long run positive relations between real output and both real bank credits and real stock prices. However, with slow adjustment of real output in responses to credit expansion or stock price increase and weak exogeneity of the latter two variables, both credits and stock prices can be persistently higher than their fundamental values. The phenomenon can be detrimental since it heightens market...

  • banking_models_monetary_transmission_mechanism_Malaysia_are_Islamic_banks_different_malika.pdf.jpg
  • Journal Article


  • Authors: Malika Akhatova; Mohd-Pisal Zainal; Mansor H. Ibrahim (2016)

  • The present paper comparatively evaluates the credit channel of monetary transmission process of Islamic banks and conventional banks by focusing on their lending/financing behaviour in responses to monetary policy shocks as well as other shocks. Adopting structural vector autoregression (SVAR) specification, we validate the significant responses of both conventional bank credit and Islamic bank financing to monetary policy shocks. However, the dynamic behaviour of Islamic banks following monetary policy shocks as well as other shocks tends to be different. Our analysis indicates that the Islamic bank financing tends to respond immediately while the conventional bank credit exhibits d...

  • business_cycle_bank_lending_procyclicality_dual_banking_system_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2016)

  • The paper studies bank lending behaviour over the business cycle in a dual banking system, Malaysia, with the objective of ascertaining whether Islamic banks have a role in stabilizing credit. The study makes use of unbalanced panel data of 21 conventional banks and 16 Islamic banks covering mostly the period 2001–2013. Applying dynamic GMM estimators, we find the aggregate loans by banks to be pro-cyclical in conformity with existing studies. However, when we segregate the lending/financing behaviour of conventional and Islamic banks, the cyclicality of bank lending seems to be true only for conventional banks. As for the Islamic banks, the business cycle does not seem to affect thei...

  • Capital_regulation_and_Islamic_banking_performance_Mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2019)

  • This paper empirically assesses the relation between bank performance and capital regulation for Islamic banks from 13 countries and evaluates whether the relation varies with bank size, capital, and liquidity. We find small Islamic banks to be less stable and less profitable; they also cut lending growth as capital regulation becomes more stringent. The stability and lending growth of big Islamic banks are, however, directly related to capital regulation. Further, capital regulation adversely affects the profitability of Islamic banks with low liquidity and high capital holdings. While capital regulation is needed, it should not be adopted in a blanket manner for all Islamic banks.

  • PhD_competition_stability_relationship_dual_banking_systems_Mhd_Moutaz.pdf.jpg
  • PhD


  • Authors: Moutaz Abojeib (2017)

  • Numerous attempts have been made to study the impact of competition on banking-stability before and after the recent global financial crisis. In the rich theoretical and empirical literature on the topic, two contradictory views have surfaced, i.e. the competition-fragility view and the competition-stability view. This thesis provides empirical evidence of a nonlinear relationship between competition and stability that explains, at least partially, the conflicting results of previous theoretical and empirical studies. Furthermore, while the existing literature focuses on conventional banking, this thesis investigates both Islamic and conventional banks in dual banking systems and expl...

  • Competition_diversification_and_performance_in_dual_banking_a_panel_VAR_analysis_Mansor.pdf.jpg
  • Journal Article


  • Authors: Fazelina Sahul Hamid; Mansor H. Ibrahim (2021)

  • This article investigates the dynamic relationship among competition, diversification and bank performance using data for 18 countries with a dual banking system over the period 2000 to 2016. Analyses using panel vector autoregression (P.V.A.R.) model, impulse response function (I.R.F.) and variance decomposition (V.D.C.) methods confirm that market power increases the profitability and the stability of banks the dual banking system while revenue diversification reduces them. Market power increases revenue diversification of banks. Segregating the sample of banks into emerging and developing countries, we find that positive impact of market power on profitability is stronger for emerg...

  • Credit_expansion_and_financial_stability_in_Malaysia_Mansor.pdf.jpg
  • Journal Article


  • Authors: Seow Shin Koong; Siong Hook Law; Mansor H. Ibrahim (2017)

  • This study investigated the degree of synchronization between credit expansion and financial stability in Malaysia at aggregated and disaggregated levels. The dynamic factor model and a broad range of macrofinancial variables are adopted to construct a financial stability index to measure the stability of the Malaysian financial system. The non-parametric method is subsequently employed to gauge the degree of synchronization between credit and financial stability. The empirical findings indicated a negative synchronization between business credit and financial stability in Malaysia, suggesting that an expansion in business credit would lead to financial instability. The results implie...

  • item.jpg
  • PhD


  • Authors: Nazrul Hazizi Noordin (2021)

  • This study extends the bank ownership database of Claessens and van Horen (2015) to investigate the role of state-owned and foreign banks in the development of private credit markets in countries with a dual banking system. The enhanced database contains state and foreign ownership information of 1,038 banks operating in 29 countries, categorised as either Islamic or non-Islamic. To begin, this study uses the database to identify the bank ownership patterns in the dual banking countries. The data reveals that the ownership structure of the Islamic banking industry changes in a different manner from that of their conventional counterpart. More specifically, it shows that, in line with ...

  • item.jpg
  • PhD


  • Authors: Hishamuddin Abdul Wahab (2013)

  • The study of currency exposure in the context of small open economies such as the ASEAN-4 region is important in view of the higher degree of openness of the economies and the progressive growth of the Islamic finance industry. This study examined the presence of currency exposure in a sample of 405 listed non-financial corporations from Indonesia, Malaysia, Singapore and Thailand over a duration of 18 years from 1993 to 2010. This study is different from previous studies as it combines two assessment methods, i.e., the cash flow (CF) and stock returns (SR) approaches. Furthermore, this study covers two major events of the financial crises ...

  • item.jpg
  • PhD


  • Authors: Azarahiah Lokman @ Yusop (2018)

  • Bank financing is an important external source of financing for SMEs. However, banks often considered SMEs as riskier than large enterprises and therefore use various tools to mitigate their risks in SME lending / financing such as imposing collateral requirement, higher pricing and credit rationing. This may limit access to finance for the SMEs. By understanding SME default risk better, banks may reduce or eliminate the collateral requirement, lower the pricing or avoid credit rationing thus improving access to finance for the SMEs. Studies have considered various risk factors and their impact on default. However, none, to the best of my knowledge has considered religion as a risk fa...

Prof. Dr. Mansor H. Ibrahim
author picture
Qualification: Ph.D.in Economics, Washington University in St. Louis, Missouri, USA . (1996)
Fields/Area of Specialization: Macro/Monetary economics
Prior to joining INCEIF, Prof. Dr. Mansor H. Ibrahim served the Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia (UPM) for three years (2009- 2011) and the Department of Economics, International Islamic University Malaysia for 12 years (1996-2008). He studied at Washington University where he received his A. B. (Economics) in 1990, A.M. (Economics) in 1991 and PhD in Economics in 1996. His research interest includes monetary economics, money and banking, analysis of financial markets and applied econometrics. He currently serves as Deputy President Academic (DPA) of INCEIF and as Dean for School of Graduate and Professional Studies (SGPS).
Showing results 1 to 20 of 124
  • rolling_regression_analysis_international_transmission_inflation_malaysia_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2009)

  • The paper assesses the transmission of foreign inflationary disturbances for Malaysia. Using quarterly data from 1971 to 2003, we form a four-variable vector error correction model (VECM) consisting of domestic prices, US prices, Ringgit exchange rate and relative interest rate. Apart from the full-sample analysis, recursive and rolling regressions are adopted to examine potential changes in inflation transmission from the US to Malaysia. As a basis for inferences, we rely on the speed of adjustments estimates as well as the significance of lagged first-differenced terms of the VECM. The results unequivocally suggest significant spillover of US inflationary disturbances to Malaysia in...

  • empirical_analysis_real_activity_stock_returns_emerging_market_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2010)

  • The present paper analyzes the role of stock market returns as a predictor of real output for a fast-growing emerging market, Malaysia. In the analysis, forecasting equations for 1-, 2-, 4-, and 8-quarter forecasting horizons based on autoregressive distributed lags framework are adopted. From the estimation, we find evidence that stock market returns do contain predictive ability at short-forecasting horizons, especially at less than 4-quarter horizons. Estimating the forecasting models recursively, we note reduction of out-of-sample forecasting evaluation statistics, namely the mean absolute errors (MAE) and the mean squared forecast errors (MSFE), from those obtained from the simpl...

  • Are_Islamic_banks_suffering_from_a_model_misfit_comparison_with_cooperative_banks_Mansor.pdf.jpg
  • Journal Article


  • Authors: Rosana Gulzar; Mansor H. Ibrahim; Mohamed Ariff Abdul Kareem (2020)

  • For the first time, this study investigates whether, in mimicking conventional banks, Islamic banks have become less stable than their theoretical equivalent: cooperative banks in Europe. Theoretically, the prohibition of interest should have pushed Islamic banks towards mutuality and profit-sharing, which have been argued as stabilising. In practice, however, banks are pushed for growth under a debt-driven commercial banking model, which is not only antithetical to the Shariah but is also destabilising. This may explain why empirical findings are still divergent in Islamic banking stability studies. Our study employs the generalised method of moments (GMM) system to compare the stabi...

  • asymmetry_mean-reverting_behavior_asean_stock_market_returns_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2011)

  • The present paper characterizes the mean-reverting behavior of six ASEAN markets - Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – using an autoregressive exponential GARCH-in mean model and daily data from August 2000 to May 2010. The results indicate fast speed of mean-reversion in the returns of these markets but with quite distinct patterns of return dynamics. The evidence seems strong to suggest asymmetric mean reversion and overreaction during market downturns in the Indonesian market. The Vietnamese market exhibits most persistent return autocorrelation with some evidence pointing to higher persistence during market downturns. However, there is no evide...

  • bail out was a success_mansor_perkem.pdf.jpg
  • Academic proceeding


  • Authors: Mohd Adib Ismail; Mansor H. Ibrahim; Mohammed Yusoff; Mohd-Pisal Zainal (2010)

  • This paper is aimed to examine the impact of bail-out policy carried out following the financial crisis which hit the Malaysian economy some years ago. Using panel estimation methods, this study tries to analyze the relationship between firms‟ investments and their cash flows before and after the crisis period. Theoretically, the relationship becomes tight due to the crisis. This tight relationship indicates the existence of severe financial constraints faced by existing firms. Such relationship is on the contrast to the loose relationship prior the crisis when the financial market was liberalized through various deregulations including the interest rates deregulation. However, to com...

  • the_bank_lending_channel_monetary_policy_transmission_dual_banking_system_mansoribrahim.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2017)

  • This paper examines the impact of monetary policy on bank lending in a dual banking system, i.e. Malaysia. Making use of an unbalanced panel data set of 38 Islamic and conventional banks covering mostly 2001-2014, we find evidence that variations in monetary policy affect lending growth of Islamic banks and, to some extent, conventional banks. The results further reveal that, in comformity with studies using aggregate Islamic financing data, the Islamic financing growth reacts more strongly to monetary policy changes.

  • Bank_lending_deposits_and_risk_taking_in_times_of_crisis_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Syed Aun Raza Rizvi (2018)

  • In this study, we conduct a panel analysis of Islamic and conventional banks to ascertain whether Islamic banks are able to sustain financing supply and whether its growth is higher than conventional bank lending growth in times of stress. For concreteness, we also assess whether the sustained financing supply of Islamic banks is justified by a concomitant increase in Islamic deposit growth and is not linked to excessive risk taking. Utilizing a panel sample of 25 Islamic banks and 114 conventional banks from 10 dual-banking countries, we observe sustained financing supply by Islamic banks but significant reduction in the lending growth by conventional banks during the crisis period. ...

  • bank_lending_macroeconomic_conditions_financial_uncertainty_evidence_malaysia_eskandar_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Mohamed Eskandar Shah Mohd Rasid (2012)

  • In this paper, we examine the interrelations between bank lending, macroeconomic conditions and financial uncertainty for an emerging economy, Malaysia. Adopting time series techniques of cointegration, causality and vector autoregressions (VARs), we arrive at the following main results. We note long run positive relations between real output and both real bank credits and real stock prices. However, with slow adjustment of real output in responses to credit expansion or stock price increase and weak exogeneity of the latter two variables, both credits and stock prices can be persistently higher than their fundamental values. The phenomenon can be detrimental since it heightens market...

  • banking_models_monetary_transmission_mechanism_Malaysia_are_Islamic_banks_different_malika.pdf.jpg
  • Journal Article


  • Authors: Malika Akhatova; Mohd-Pisal Zainal; Mansor H. Ibrahim (2016)

  • The present paper comparatively evaluates the credit channel of monetary transmission process of Islamic banks and conventional banks by focusing on their lending/financing behaviour in responses to monetary policy shocks as well as other shocks. Adopting structural vector autoregression (SVAR) specification, we validate the significant responses of both conventional bank credit and Islamic bank financing to monetary policy shocks. However, the dynamic behaviour of Islamic banks following monetary policy shocks as well as other shocks tends to be different. Our analysis indicates that the Islamic bank financing tends to respond immediately while the conventional bank credit exhibits d...

  • business_cycle_bank_lending_procyclicality_dual_banking_system_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2016)

  • The paper studies bank lending behaviour over the business cycle in a dual banking system, Malaysia, with the objective of ascertaining whether Islamic banks have a role in stabilizing credit. The study makes use of unbalanced panel data of 21 conventional banks and 16 Islamic banks covering mostly the period 2001–2013. Applying dynamic GMM estimators, we find the aggregate loans by banks to be pro-cyclical in conformity with existing studies. However, when we segregate the lending/financing behaviour of conventional and Islamic banks, the cyclicality of bank lending seems to be true only for conventional banks. As for the Islamic banks, the business cycle does not seem to affect thei...

  • Capital_regulation_and_Islamic_banking_performance_Mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2019)

  • This paper empirically assesses the relation between bank performance and capital regulation for Islamic banks from 13 countries and evaluates whether the relation varies with bank size, capital, and liquidity. We find small Islamic banks to be less stable and less profitable; they also cut lending growth as capital regulation becomes more stringent. The stability and lending growth of big Islamic banks are, however, directly related to capital regulation. Further, capital regulation adversely affects the profitability of Islamic banks with low liquidity and high capital holdings. While capital regulation is needed, it should not be adopted in a blanket manner for all Islamic banks.

  • PhD_competition_stability_relationship_dual_banking_systems_Mhd_Moutaz.pdf.jpg
  • PhD


  • Authors: Moutaz Abojeib (2017)

  • Numerous attempts have been made to study the impact of competition on banking-stability before and after the recent global financial crisis. In the rich theoretical and empirical literature on the topic, two contradictory views have surfaced, i.e. the competition-fragility view and the competition-stability view. This thesis provides empirical evidence of a nonlinear relationship between competition and stability that explains, at least partially, the conflicting results of previous theoretical and empirical studies. Furthermore, while the existing literature focuses on conventional banking, this thesis investigates both Islamic and conventional banks in dual banking systems and expl...

  • Competition_diversification_and_performance_in_dual_banking_a_panel_VAR_analysis_Mansor.pdf.jpg
  • Journal Article


  • Authors: Fazelina Sahul Hamid; Mansor H. Ibrahim (2021)

  • This article investigates the dynamic relationship among competition, diversification and bank performance using data for 18 countries with a dual banking system over the period 2000 to 2016. Analyses using panel vector autoregression (P.V.A.R.) model, impulse response function (I.R.F.) and variance decomposition (V.D.C.) methods confirm that market power increases the profitability and the stability of banks the dual banking system while revenue diversification reduces them. Market power increases revenue diversification of banks. Segregating the sample of banks into emerging and developing countries, we find that positive impact of market power on profitability is stronger for emerg...

  • Credit_expansion_and_financial_stability_in_Malaysia_Mansor.pdf.jpg
  • Journal Article


  • Authors: Seow Shin Koong; Siong Hook Law; Mansor H. Ibrahim (2017)

  • This study investigated the degree of synchronization between credit expansion and financial stability in Malaysia at aggregated and disaggregated levels. The dynamic factor model and a broad range of macrofinancial variables are adopted to construct a financial stability index to measure the stability of the Malaysian financial system. The non-parametric method is subsequently employed to gauge the degree of synchronization between credit and financial stability. The empirical findings indicated a negative synchronization between business credit and financial stability in Malaysia, suggesting that an expansion in business credit would lead to financial instability. The results implie...

  • item.jpg
  • PhD


  • Authors: Nazrul Hazizi Noordin (2021)

  • This study extends the bank ownership database of Claessens and van Horen (2015) to investigate the role of state-owned and foreign banks in the development of private credit markets in countries with a dual banking system. The enhanced database contains state and foreign ownership information of 1,038 banks operating in 29 countries, categorised as either Islamic or non-Islamic. To begin, this study uses the database to identify the bank ownership patterns in the dual banking countries. The data reveals that the ownership structure of the Islamic banking industry changes in a different manner from that of their conventional counterpart. More specifically, it shows that, in line with ...

  • item.jpg
  • PhD


  • Authors: Hishamuddin Abdul Wahab (2013)

  • The study of currency exposure in the context of small open economies such as the ASEAN-4 region is important in view of the higher degree of openness of the economies and the progressive growth of the Islamic finance industry. This study examined the presence of currency exposure in a sample of 405 listed non-financial corporations from Indonesia, Malaysia, Singapore and Thailand over a duration of 18 years from 1993 to 2010. This study is different from previous studies as it combines two assessment methods, i.e., the cash flow (CF) and stock returns (SR) approaches. Furthermore, this study covers two major events of the financial crises ...

  • item.jpg
  • PhD


  • Authors: Azarahiah Lokman @ Yusop (2018)

  • Bank financing is an important external source of financing for SMEs. However, banks often considered SMEs as riskier than large enterprises and therefore use various tools to mitigate their risks in SME lending / financing such as imposing collateral requirement, higher pricing and credit rationing. This may limit access to finance for the SMEs. By understanding SME default risk better, banks may reduce or eliminate the collateral requirement, lower the pricing or avoid credit rationing thus improving access to finance for the SMEs. Studies have considered various risk factors and their impact on default. However, none, to the best of my knowledge has considered religion as a risk fa...