International Borneo Business Conference (IBBC) 2012

Assalamualaikum.

Just recently I attended the IBBC Conference organized by my school. The conference was successfully held at Belmont Marco Polo Hotel, Tawau, Sabah from 18-21 December 2012 with a theme ‘Business and Economic Sustainability in Asia”. I have learnt so many things from the conference as well as meeting new friends & research expertise from various local & international universities. I presented two papers at a different parallel sessions, and felt honoured to have prominent figures like Prof Dr Mansur Ibrahim of INCEIF, an econometric expert to witness my presentation and give some good advice on improving my paper. It was indeed a fruitful session and I thanked everyone especially my co-researchers Mr Wijaya Kamal, Ms Khairul Hanim and Ms Dayang Safrina for their excellent commitment in completing the 1st phase of our research project.

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With fellow colleagues Ibu Asniati, Kak Dayang, and Hanim during the opening ceremony of the IBBC 2012 Conference

 Of all parallel sessions that I attended, there is this 1 paper that really caught my attention. The paper was presented by AP Dr. Mohd Fauzan Nordin of UIAM and its about Adopting Strategies in Knowledge Management System. One important thing that he highlighted was the needs for us the human being to have the ‘Heartware’ elements to be instilled in our mindset. If we want to be the leader in the  ICT industry for instance,  we need to have better equipments, gadgets, an up-to-date  softwares and hardwares. But having those high geared so-called equipments is simply not enough if man is still plagued with all the bad inner feelings such as  jealousy, back stab, suspicious,  etc. In other words, if we translate this into real life, there’s no use of having all those excellent ‘hardwares’, up-to-date ‘softwares’ if we don’t have the elements of ‘heartwares’ within ourselves. A well-known company with high-end equipments, mansion-lookalike buildings, with thousands of investors may not be able to sustain if anyone of them did not have a good heart. Take the case of Enron and Satyam’s poor corporate governance as example. Heart is where it all starts. And it must be a good one. If we have good heart, then we would have good intention to do anything. With good intention, it leads us to be someone better in life or at work, and in fact bringing us closer to our creator.

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receiving my certificate of presentation from the parallel session chairperson, Prof Dr. Shazali Abu Mansor, Dean Faculty of Economic and Business, Universiti Malaysia Sarawak  

FACTORS INFLUENCING DOMESTIC AND FOREIGN COMMERCIAL BANKS’ PROFITABILITY: PANEL EVIDENCE FROM MALAYSIA

Amer Azlan Abdul Jamal, Masyhuri Hamidi and Mohd Rahimie Abdul Karim

Abstract: This paper attempts to investigate the possible macroeconomic factors that influence the profitability of domestic and foreign commercial banks in Malaysia. For this purpose, an unbalanced panel dataset of 16 commercial banks were used and tested using panel data regression technique over the period of 2004-2011. To get the differences of external determinants between domestic and foreign banks, all the samples were then split according to their ownership, resulting in two sub-samples of 8 domestic and 8 foreign banks. The result indicates that all the external factors  namely inflation, interest rate and GDP have a positive impact on all commercial bank’s return on assets while stock market development influence bank’s profit negatively. Similar result was also shown by the two sub samples except that interest rate appears to influence foreign bank’s profit positively but shows no impact on domestic bank’s performance.

 Keywords: macroeconomic variables, domestic and foreign commercial banks profitability, panel data, Malaysian banking sector

INVESTMENT DECISION MAKING STYLE IN SABAH: A PRELIMINARY RESULT

Amer Azlan Abdul Jamal, Dayang Safrina Ag Budin, Wijaya Kamal Ramlan and Khairul Hanim Pazim

Abstract: The capital market investments have become one of the favourites among investors that serve as a platform to increase their wealth. It offers an array of investment products such as shares, bonds, loan stocks and unit trusts. In regard to this, different investors would have different investment style and strategy, depending on their objectives. Some don’t even have strategy and would rather ask for ‘hot tips’ or rumours especially investing in stock market. Prior studies by Frieder (2004) and Olsen (1998) revealed that some investors would prefer listening to strangers when investing rather than making fundamental analysis on the respective stocks which in consequence negatively affect their investment objectives. In other words, they tend to be irrational when making investment decision which further causes mispricing, discourage trading among market participants and contribute towards market inefficiencies. Thus, the main objective of this research is to study the factors that influence investors’ investment decision making style in Sabah. The research is expected to give the general insight on the behaviour of local investors and will assist the effort to further enhance the Malaysian capital market and economy as a whole. It also could be used by investors, organization, and government as a foundation to formulate strategies to control and monitor the economic condition (particularly in the capital market investments) and at the same time having more professional advisor in advising small investors in making their investment decision.

 Keywords: behavioural finance, decision making style, prospect theory, efficient market hypothesis

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