Macroeconomic determinants of corporate failures in Malaysia

• Main Authors: Ahmad, Abd Halim @ Hamilton, Mohd Daud, Siti Nurazira, Mazlan, Ahmad Rizal, Marzuki, Ainulashikin
• 格式: Article
• 語言: English
• 出版: Canadian Center of Science and Education 2008
• 主題: HB Economic Theory
• 在線閱讀: http://repo.uum.edu.my/1827/1/Abd_Halim_%40_Hamilton_Ahmad_....pdf; http://repo.uum.edu.my/1827/; http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/1621/1532

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.