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Macroeconomic determinants of corporate failures in Malaysia


Ahmad, Abd Halim @ Hamilton and Mohd Daud, Siti Nurazira and Mazlan, Ahmad Rizal and Marzuki, Ainulashikin (2008) Macroeconomic determinants of corporate failures in Malaysia. International Journal of Business and Management, 3 (3). pp. 3-10. ISSN 1833-3850

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Abstract

This research investigates the long-run dynamic linkages between the corporate failures in Malaysia and selected macroeconomic variables by employing the Autoregressive Distributed Lag (ARDL) bound test, a robust and recent time series technique which is applicable irrespective of whether the regressors are I(0) or I(1).Corporate failure rate is the ex-ante variable in a linear function model with five explanatory macroeconomic variables. A dummy variable to decipher the corporate failure rates during the Asian financial crisis was also included. The results show that corporate failure rates in Malaysia are significantly and positively associated with the average lending rate, inflation rate and, gross domestic product (GDP) in the long-run.

Item Type: Article
Uncontrolled Keywords: Corporate failures, Macroeconomic, Bound test
Subjects: H Social Sciences > HB Economic Theory
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 13 Dec 2010 07:53
Last Modified: 26 Apr 2016 01:49
URI: http://repo.uum.edu.my/id/eprint/1827

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