Ruzita Abdul Rahim

Ruzita Abdul Rahim
Universiti Kebangsaan Malaysia | ukm ·  Faculty of Economics and Management

About

74
Publications
41,294
Reads
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805
Citations
Citations since 2016
38 Research Items
707 Citations
2016201720182019202020212022020406080100120140
2016201720182019202020212022020406080100120140
2016201720182019202020212022020406080100120140
2016201720182019202020212022020406080100120140
Additional affiliations
January 2007 - present
Universiti Kebangsaan Malaysia
Position
  • Professor

Publications

Publications (74)
Article
Full-text available
Purpose-Drawing upon underinvestment theory and clientele effect hypothesis, this paper aims to examine the effects of foreign currency (forex) exposure and Shari'ah-compliant status on firms' financial hedging strategy. Design/methodology/approach-Based on data of 250 nonfinancial firms listed on Bursa Malaysia from 2010 to 2018 (2,250 firm-year o...
Article
Full-text available
This study investigates the role of corporate governance in influencing the debt financing decision of 198 non-financial listed companies in Sri Lanka from 2009 to 2016. Sri Lanka’s corporate governance (CG) code promotes dispersed ownerships, larger board size and balance of power and authority through various means, such as exclusivity between th...
Article
This paper examines the potential explanations for Initial Public Offering (IPO) lockup provisions. This study uses cross-sectional regression, robust least squares, and quantile regression on data for the period from 2000 to 2014. We explore the explanation of lockup as (i) a signal of firms' commitment to alleviate the moral hazard problem, or (i...
Article
Purpose The purpose of this paper is to investigate whether market conditions have an effect on investors’ propensity to herd in an emerging economy’s stock market. Additionally, given the lack of research on Islamic behavioral finance, the authors further investigate if the herding phenomenon is distinct in Islamic versus conventional stocks. Des...
Article
Background and Purpose: Studies focusing on mutual fund managerial abilities and investment style strategies are still scarce in the literature. Thus, this study aims to provide new evidence and insights into the managerial abilities and investment style performances of Malaysian fund managers. Methodology: A total of 444 Malaysian equity mutual fu...
Article
Full-text available
This study investigates the impact of foreign exchange (forex) exposure and Shariah-compliant status on firms' decision to practise hedging. It employs panel multiple and multinomial logistic regression on 702 firm-year observations from 117 non-financial listed firms over the period from 2010 to 2015. The sample consists of 70% Shariah-compliant f...
Article
Purpose This study aims to investigate Malaysian stock market efficiency from the view of Sharīʿah-compliant and conventional stocks based on the effectiveness of technical trading strategies. Design/methodology/approach This study uses unconventional trading strategies that mix buy recommendations of Bursa Malaysia analysts with sell signals gene...
Article
This study compares the performance of Shariah and conventional mutual funds in emerging markets. The performance of 833 Shariah and conventional funds in 6 emerging markets from 2000 to 2015 was analyzed. We analyzed the Sharpe index, Treynor index, and Jensen’s alpha to compare the performance of Shariah and conventional funds. Jensen's alpha res...
Article
Full-text available
Purpose The purpose of this paper is to investigate whether the shariah -compliant status of the firms negatively influences their use of foreign exchange hedging instruments. Design/methodology/approach This paper uses a logit panel regression on 350 firm-year observations from 70 nonfinancial listed firms over the period from 2010 to 2014. Shari...
Article
This article examines the moderating effect of information asymmetry on the relationship between parameters of lockup provision and flipping activity of Malaysian initial public offerings (IPOs). While the main purpose of lockup provision is to promote commitment of major shareholders for the well-being of the IPO issuing companies at least through...
Article
The purpose of this paper is to examine the impact of the Malaysian IPO regulatory change involving lock-up provisions on the initial performance of Malaysian IPOs. This study examines the impact of the revision in the IPO lock-up provision that took effect on February 2008 on the initial returns of 373 IPOs listed between January 2000 and December...
Article
Full-text available
This study probed into the relationship between foreign exchange (FX) exposure of 123 non-financial listed Malaysian firms, and their decision to practice hedging, for the period from 2010 until 2017. The FX exposure was proxied by using the foreign sales ratio, as well as the total and net amount of foreign currency exposure (TOTFCR and NETFCR, re...
Book
This book is a part of a doctoral thesis entitled "Impact of foreign exchange exposure and Shariah-compliant status on firms' decision to practice hedging". This book is an initiative to foster deeper discussion among academicians, practitioners, and policymakers on how foreign currency (FX) hedging should be practiced according to the Shariah juri...
Article
Most of major shareholders, known as promoters of the firms, are subject to lock-up ratio for a certain period, following their company’s IPO listing. Interestingly, the lock-up ratio among firms vary, suggesting that it serves as a signalling tool to minimize potential conflicts between insiders and uninformed investors. This article investigates...
Article
Full-text available
The objective of this study is to investigate the relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) inflows. FDI has been identified as an economic consequence of IFRS. However, thus far, few studies have examined this issue in developing countries and there are no studies which have examined...
Article
Full-text available
This study examines the mediating effect of information asymmetry on the relationship between IFRS and FDI inflows in ASEAN countries. The hypotheses were empirically tested using a sample of ASEAN 6 from 2001 to 2016 and for information asymmetry measurement, this study applies Bid-ask spread and Illiquidity measurement introduced by Amihud (2002)...
Article
Full-text available
This study investigates the causal relationship between International Financial Reporting Standard (IFRS) adoption and Foreign Direct Investment (FDI) inflows in ASEAN countries during the period of 2001 to 2016. This study applies panel co-integration and causality test to examine the short and long run and causal relationship between variables. I...
Conference Paper
Full-text available
Foreign Direct Investment (FDI) has been identified as an economic consequence of International Financial Reporting Standard (IFRS) adoption. However thus far, limited studies have examined this issue. The objective of this study is to examine the relationship between IFRS adoption by ASEAN countries and FDI. In order to fulfill this objective, thi...
Article
Full-text available
This study investigates the influence of “offer for sale” by existing shareholders on investors’ reaction in the IPO immediate aftermarket. The “offer for sale” is measured by the proportion of shares offered to public from the sale of the existing shareholdings prior to IPO against the total number of shares offered during IPO. The “offer for sale...
Article
Purpose The purpose of this study is to identify selected information from the prospectus that might signal the IPO offer price. Design/methodology/approach This study uses cross-sectional data for a fourteen year period from 2000-2014 in examining hypotheses relating to Shariah compliant status, institutional investors, underwriter ranking and...
Article
Full-text available
Disruptive innovation is related to financial technology and known as FinTech. It includes design, delivery, and provider of financial investment services such as payments, real estate, investment, insurance/ takaful, deposits, financing, banking, saving and capital market. This study is about Adoption of Financial Technology (FinTech) in mutual fu...
Article
This study examines the determinants of herd behaviour among investors in the Malaysian stock market for the period 1995-2016 by using daily data. Also, examines herd behaviour of the Shariah-compliant, conventional stocks and the whole market of Malaysia. Determinants of herding behaviour among Malaysian investors been examined by using three diff...
Article
Foreign Direct Investment (FDI) has been identified as an economic consequence of International Financial Reporting Standard (IFRS) adoption. However thus far, limited studies have examined this issue. The objective of this study is to examine the relationship between IFRS adoption by ASEAN countries and FDI. In order to fulfill this objective, thi...
Article
Full-text available
High-quality issuing firms with encouraging inside information regarding their prospect will use signalling to differentiate their issues from low-quality issuing firms and convince prospective investors regarding the value of their firm. Hence, the present study investigates the dominant signals in explaining the initial return in the Malaysian IP...
Article
Full-text available
A lock-up provision restricts insiders from selling or disposing of a certain portion of their shares for a prescribed period. In Malaysia, most firms usually lock-up a higher portion of their shareholding than what is legally required. Despite allegations that mandatory lock-up provision results in a loss of its signaling property, the presence of...
Conference Paper
Full-text available
Foreign investors prefer markets with less information asymmetry and high-quality financial information that enables them to assess investment prospects at a lower cost. Therefore, IFRS employs as one of the critical inputs to increase transparency, reduce information asymmetries and ultimately affect investors' decision making. Hence, this paper a...
Article
Manuscript type: Research Paper Research aims: This study examines the moderating effect of information asymmetry on the association between the institutional investors' participation and the initial public offerings (IPO) reactions in the early aftermarket: initial return and flipping activity. Design/ Methodology/ Approach: Using 383 IPOs listed...
Article
Full-text available
Default risk has been recognized as one of the key determinants of bond yield. Past studies argue that default risk can be reflected by issue characteristics, issuer characteristics and interest rate behaviors on riskless security. As default risk is believed to be higher in developing markets due to the issue of illiquidity, capital inadequacy and...
Article
Full-text available
The high initial trading volume following an IPO listing is an anomaly in the aftermarket and this activity is mainly caused by the flipping activity of flippers. Therefore, this study argues that investors' interest could be one of the factors that trigger flipping activity. This study uses the signalling theory argument, whereby the proportion of...
Article
The main objective of this study is to re-examine the efficiency of Malaysia stock market by applying technical analysis trading strategies. The market efficiency is tested based on the returns generated from the implementation of buy signals obtained through the combined indicators of Bollinger Band and Exponential Moving Average 200, and sell sig...
Article
Full-text available
ABSTRAK Objektif utama kajian ini adalah untuk menguji semula kecekapan pasaran saham di Malaysia dengan mengaplikasikan strategi urusniaga analisis teknikal. Kecekapan pasaran diuji berdasarkan keuntungan yang dijana daripada penggunaan isyarat beli yang diperoleh daripada gabungan indikator teknikal Bollinger Band (BB) dan Exponential Moving Aver...
Article
Islamic banking has established for the last 40 years, yet only recently researchers acknowledge social failures of Islamic banking and finance. This has led to a proposition of forming new forms of banking and non-banking institutions that include social banking. It is argued that in considering the developmentalist needs of the Muslim societies i...
Article
Full-text available
This paper examines the moderating effect of investor demand on the relationship between institutional investors’ participation and flipping activity of Malaysian IPOs. Measured with two proxies, flipping activity seems to be the least risky way to optimize returns from IPOs. If done excessively, flipping activity could produce a damaging effect on...
Article
Full-text available
This paper examines the moderating effect of pre-listing investor demand on the direct influence of lockup provision and institutional investors' participation on flipping activity. By definition, flipping activity is a liquidation of IPOs by new shareholders during the first few trading days. If flipping activity is done substantially, it has pote...
Article
Full-text available
This paper examines the effects of the involvement of informed investors and the presence of information asymmetry in fixedprice mechanism on over-subscription ratio in the Malaysian initial public offerings (IPO). Analyzing the data on 373 IPOs listed on Bursa Malaysia from 2000 to 2012, we find an insignificant positive relationship between infor...
Article
Full-text available
Lock-up provision may extend its role as a signaling tool, albeit its practice is mainly to ensure the commitment of major shareholders to the well-being of IPO companies at least during lock-up period. Despite the mandatory lock-up ratio of 45 percent of outstanding shares, the voluntary action of major shareholders which is revealed through highe...
Article
This paper examines the IPO anomalous behavior in the immediate aftermarket from two dimensions; initial return and flipping activity. In light of the commencement of lockup provision in May 1999 to displace the profit guarantee on issuing companies, this study examines the effect of both extent and length of the lockup provision on the behavior of...
Article
A lock-up agreement ensures that major shareholders retain significant economic interest in the companies following the IPOs. Rationally, these insiders will not adhere to the lock-up agreement unless the benefits of doing so can more than offset the costs. Therefore, in an environment characterized by high information asymmetry, a lock-up agreemen...
Article
This paper examines the influence of institutional investors’ participation on the flipping activity of Malaysian IPOs. Measured as the percentage of trading volume on the first trading day against the total number of shares offered, flipping is the quickest way to gain huge profits from IPOs. However, excessive flipping activity has significant po...
Article
Full-text available
Purpose: This study aims to examine the factors that influence credit card misuse among working adults in Klang Valley, Malaysia. The relationship among self-esteem, materialism, impulsive buying, budget constraint, compulsive buying and credit card misuse are explored in this study. Design/methodology/approach: A total of 186 questionnaires was co...
Article
This paper examines the moderating effect of information asymmetry on the relationship between parameters of lockup provision and flipping activity of Malaysian IPOs. While the main purpose of lockup provision is to promote commitment of major shareholders for the well-being of the IPO issuing companies at least throughout the lockup period, its im...
Article
Full-text available
This paper examines the influence of the voluntary element in lockup provision on flipping activity of Malaysian IPOs. While the main purpose of lockup provision is to ensure the major shareholders remain committed to the well-being of the IPO companies at least throughout the lockup period, its importance extends as a signaling device that can con...
Article
Full-text available
Dynamic trade-off theory proposes that firms may deviate from their target capital structure but they will exhibit an adjustment behavior towards that target. Estimating the speed of adjustment (SOA) is an investigation for the joint hypotheses that the target actually exists and that firms adjust toward their target. However, using a single estima...
Conference Paper
This study examines the interaction effects of firm’s characteristics such as board structure and free cash flow on divided per share as a proxy of firm’s performance. The fixed effect regression uses a sample of 361 non-financial Malaysian listed firms over the period of 2002 to 2007. The interaction between board structure namely duality, indepen...
Article
This paper attempts to investigate the influence of lockup provision and some control variables on the flipping activity of Malaysian IPO. Measured as the percentage of trading volume on the first trading day divided by the number of shares offered, flipping is the easiest way to make a quick profit from IPOs in the initial aftermarket. Consequentl...
Article
Full-text available
The student-centered learning (SCL) approach is an approach to education that focuses on learners and their needs, rather than relying upon the input of the teacher's. The present paper examines how the SCL approach is integrated as a learner-centered paradigm into finance courses offered at a business school in a research university in Malaysia. S...
Article
This paper examines the characteristics of the audit committee towards performance before and after the revised code of corporate governance in October 2007.The review of the code is to improve and strengthen the quality, and the effectiveness of the board and audit co mmittee in the public listed company. In this study, we focus on the Government...
Article
Full-text available
This study examines the direct and interaction effects of firm's characteristics such as board structure and capital structure on divided per share as a proxy of firm's performance. The fixed effect regression uses a sample of 361 non-financial Malaysian listed firms over the period of 2002 to 2007. The decision made by the board of directors which...
Article
Full-text available
This study examines the impact of oil price volatility on firm performance in the context of an emerging market, Malaysia. The effect of crude oil price on the performance is examined for the period of January 1986 to December 2011 using GARCH and EGARCH models reflecting the evaluation on volatility and asymmetric effects. Results indicate the sig...
Article
This paper examines the aftermarket trading volume following an initial public offering (IPO) in a sample of 243 IPOs listed on Bursa Malaysia between June 2003 and June 2008. Specifically, this study investigates the degree of flipping activity and its relationship with six ex-ante variables including IPO initial returns. Consistent with previous...
Article
This study examines a sample of 384 initial public offerings (IPOs) issued and listed on Bursa Malaysia from January 1999 to December 2008. The objectives of this study are to examine the difference in initial returns of Shariah versus non-Shariah IPOs and the factors that explain the initial returns of these IPOs. A matched sample of Shariah IPOs,...
Article
This study empirically examines the influence of underpricing on the aftermarket liquidity of 191 initial public offerings (IPOs) that are listed on Bursa Malaysia, an emerging stock market in the South-East Asia, from June 2003 to December 2008. This hypothesized effect is based on the liquidity theory which posits that underpricing contributes to...
Article
Full-text available
This study analyzes the performance of 361 non-financial public firms that are listed on Bursa Malaysia during a relatively tranquil period from 2002 until 2007. The objective is to identify the corporate finance and governance practices that contribute to firm performance. In this study, performance is measured using Tobin's Q. The results from a...
Article
Full-text available
Winner’s Curse and IPO Initial Performance: New Evidence From Malaysia
Article
Empirical researches as well as liquidity theory suggest that underpricing improves after market liquidity of IPOs. A few other studies meanwhile show that in the secondary market, the relationship is mediated by ownership dispersion. However, the present study is more interested in a proposition that states that the correlation between underpricin...
Conference Paper
Full-text available
This study analyzed the performance of Malaysian non financial publicly listed firms from year 2002 to 2007 of Bursa Malaysia with a view to identify the determinants of corporate performance, which can be used as an index for future estimation and benchmarking. Tobin"s Q is used to proxy corporate financial performance as the dependent variable. T...
Article
Mat Nor 2 This study investigates firm valuation effects of investment expenditures in a sample of 361 non-financial Malaysian listed firms over the 2002-2007 period. The results of the fixed effect regression runs on a balanced panel data indicate insignificant impacts of investment and its squared term. Given the low level of investment, the find...
Article
Using Johansen multivariate cointegration test with structural break and Granger-causality based on vector error correction model, the interactions between stock prices (KLCI) and monetary policy variables (M1, M2 and interest rate) are examined in the Malaysian setting using monthly data for the post 1997 Asian financial crisis period from January...
Article
Purpose The purpose of this paper is to investigate the initial return patterns of Malaysian initial public offerings (IPOs) and whether shari'a ‐compliant status would alter such patterns. Design/methodology/approach The effect of shari'a ‐compliant status on the patterns of initial return of IPOs is analyzed using a sample of 386 IPOs issued bet...
Article
The study provides evidence on the validity of the Fisher hypothesis, linking inflation and stock returns using Malaysian data over a period of 27-year from 1980 to 2006. The puzzling negative relationship between stock returns and inflation in industrialized economies is well documented. However, similar studies in different economies such as the...
Article
This study examines whether the widely accepted conclusion from the generic equity markets, that the emerging equity markets remain segmented from the world markets but exhibit strong intra-regional leaderships, is also supported from Islamic equity market viewpoint. The new evidence is sought through investigating the relationships between Malaysi...
Article
This paper examines the role of illiquidity risk factor in asset pricing through two variants of liquidity-based three-factor models, referred as SiLiq and DiLiq, which are developed in the context of Fama-French model. The sample comprises 230 to 480 firms which stocks are listed on Bursa Malaysia over the period of January 1987 to December 2004....