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Was bail-out a success? Evidence from the investment-cash flow relationship = Adakah dasar menjamin keluar berjaya? Bukti daripada hubungan aliran tunai-pelaburan

Ismail, Mohd Adib and Ibrahim, Mansor and Zainal, Mohd-Pisal and Yusoff, Mohammed (2013) Was bail-out a success? Evidence from the investment-cash flow relationship = Adakah dasar menjamin keluar berjaya? Bukti daripada hubungan aliran tunai-pelaburan. Jurnal Ekonomi Malaysia, 47 (1). 31 - 40. ISSN 0126-1962

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Abstract

The 1997-1998 Asian financial crisis affected the balance sheets of many Malaysian firms, which increased the financial constraints on such firms. To counter the impacts, the Malaysian government carried out various directed policy measures known collectively as the bail-out policy. The present paper examines the success of the policy to reduce the financial constraints. The present paper uses panel estimation methods to analyze the relationship between firms’ investments and their cash flows. The sample of study is split into two subsamples, consisting of the periods before and after the financial crisis, respectively. The success of the policy is measured based upon the easing of financial constraints faced by Malaysian firms. Using annual financial data, consisting of unbalanced panel from the period of 1988 to 2005, the results found favour the bail-out policy. This finding indicates the success of the bail-out policy to reduce the severity of financial constraints. Krisis kewangan Asia pada tahun 1997-1998 telah memberi kesan ke atas kunci kira-kira banyak firma Malaysia yang boleh menyebabkan berlaku kekangan kewangan. Untuk mengatasi impak ini, kerajaan Malaysia telah melaksanakan pelbagai bentuk dasar terarah yang dikenali sebagai dasar jaminan keluar. Oleh itu, kertas kerja ini bertujuan untuk mengkaji kejayaan dasar tersebut untuk mengurangi kesan kekangan kewangan. Kertas kerja ini menggunakan kaedah penganggaran panel untuk menganalisis hubungan antara pelaburan firma dan aliran tunai. Sampel kajian dipecahkan kepada dua subsampel masa sebelum dan selepas krisis kewangan. Kejayaan dasar jamin keluar adalah bergantung kepada keringanan kekangan kewangan. Dengan menggunakan data panel tidak seimbang bagi tahun 1988 hingga 2005, keputusan kajian menunjukkan sokongan kepada dasar jaminan keluar. Dapatan kajian ini menunjukkan kejayaan perlaksanaan dasar jamin keluar untuk mengurangkan tekanan kekangan kewangan.

Item Type: Article (Journal)
Additional Information: 4178/57669
Uncontrolled Keywords: Bail-out; financial constraints; investment; cash flow; panel data Jaminan keluar; kekangan kewangan; pelaburan; aliran tunai, data panel
Subjects: H Social Sciences > HG Finance > HG3691 Credit
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Professor Mohammed Yusoff
Date Deposited: 21 Jul 2017 14:56
Last Modified: 11 Jan 2018 10:30
URI: http://irep.iium.edu.my/id/eprint/57669

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