UNIMAS Review of Accounting and Finance

DYNAMIC NEXUS BETWEEN ISLAMIC BANKING DEVELOPMENT AND GREEN ECONOMIC GROWTH: EVIDENCE FROM DUAL-MODEL PANEL VAR AND GMM APPROACHES IN OIC COUNTRIES

Zulfikar Hasan — 2025-11-30

This study investigates the dynamic and bidirectional relationship between Islamic banking development and green economic growth across selected member countries of the Organisation of Islamic Cooperation (OIC). Employing a dual-model econometric framework—Panel Vector Autoregression (PVAR) and the System Generalized Method of Moments (GMM)—the study utilizes panel data spanning from 2010 to 2023. The empirical findings reveal a statistically significant and mutually reinforcing nexus between Islamic financial deepening and environmental sustainability. The PVAR results indicate that shocks to Islamic banking development positively influence green economic performance over time, while green economic progress reciprocally stimulates further growth in Islamic finance. The GMM estimation confirms these outcomes, addressing endogeneity and heterogeneity across countries. These results underscore the potential of Islamic finance to serve as a strategic enabler of sustainable development, particularly through instruments such as green sukuk and Shariah-compliant environmental investment vehicles. The study contributes to the limited empirical literature on Islamic green finance and offers actionable policy recommendations to strengthen the integration of Islamic banking within national and global climate agendas in OIC countries.

THE IMPACT OF GREEN BANKING ON THE FINANCIAL PERFORMANCE OF BANKS IN MALAYSIA

Nazaria Md Aris — 2025-11-30

This study aims to investigate how green banking impacts the financial performance of Malaysian commercial banks. To accomplish this, the research used theories like Natural Resource-Based View, Innovation Theory, and Stakeholder Theory. By analysing secondary data from 15 banks over six years (2018-2023). While prior research by Sharif, Sofuoglu, Kocak, and Anwar (2024) identified a knowledge gap in green banking within Malaysia, this study seeks to bridge that gap. The results indicate that green finance initiatives may positively influence the financial performance of banks. This study offers valuable perspectives for policymakers, regulators, and financial institutions by underscoring the importance of promoting green finance initiatives. By exploring the link between green finance and financial outcomes, banks are equipped to make informed choices that bolster their sustainability efforts and strengthen their long-term financial health. It encourages banks to embed sustainability within their business strategies, enabling them to not only support environmental sustainability but also enhance their financial performance, fostering a resilient and sustainable future.

THE IMPACT OF MONETARY POLICY ON STOCK MARKET PERFORMANCE IN NINE ASEAN COUNTRIES: THE MODERATING ROLE OF INSTITUTIONAL QUALITY

Yong Haw Chong — 2025-11-30

This study examines the impact of monetary policy on stock market performance in nine ASEAN countries, while also investigating the moderating role of institutional quality. Monetary policy variables, such as interest rates, gross domestic product, and inflation rates, are analysed to determine their influence on stock market returns. Recognising the growing importance of governance and institutional frameworks in shaping economic outcomes, this study incorporates institutional quality as a moderator to assess how it strengthens or weakens the effect of monetary policy on the stock market. Using panel data from 2015 to 2023, the study employs econometric techniques including descriptive analysis, Pearson’s correlation, multiple regression analysis, fixed and random effects models, and diagnostic tests to ensure robustness. Specifically, stronger institutional environments amplify the negative impact of rising interest rates on stock market performance, indicating heightened market sensitivity to policy changes. Additionally, institutional quality enhances the positive effect of GDP and reduces the influence of inflation on stock returns. These findings underscore the critical role of institutional strength in shaping the effectiveness of macroeconomic policy on financial markets, offering valuable insights for policymakers and investors in emerging economies.

A SYSTEMATIC REVIEW ON THE INFLUENCE OF BOARD GOVERNANCE AND SUSTAINABILITY REPORTING

Khamsi Che Abdul Hamid — 2025-11-30

Sustainability reporting has become the primary method used by large corporations to inform stakeholders about the sustainability practices of the companies. Even though research on sustainability has gain prominence globally, there is still limited literature specifically on board governance and sustainability reporting of listed corporations. Therefore, it is vital that existing literature is accumulated, organised and analysed to determine the extent and development of literature in this area of research, including an overview of the key findings. The review adheres to the publication standard, namely Reporting Standards for Systematic Evidence Synthesis (ROSES). It includes articles from two leading databases, Scopus and Web of Science, which generated a final total of 53 related studies. The review is mainly categorised into six themes: social reporting, environmental reporting, GRI-based reporting, ESG-based reporting, reporting based on the scoring system and a combination of sustainability and integrated reporting. These themes further explore board governance and other related corporate governance aspects. The findings from the thematic analysis reveal an overview of board governance on sustainability reporting according to four main themes: (1) board independence and diversity; (2) board size and meeting; (3) board committee; and (4) board remuneration. Based on the results, board size and women directors tend to encourage sustainability reporting, but board independence seems less effective. The findings of this review are crucial for enhancing stakeholder confidence and protecting shareholders' interests as this study systematically summarises findings from various countries and contexts and does not just refer to the results of a single study. This study should also be particularly useful to future researchers who plan to embark on research in the areas of governance and sustainability reporting. The gaps in this research area are identified, and recommendations for future research are proposed.

THE INFLUENCE OF FINANCIAL RISK ON BANK STOCK RETURN IN MALAYSIA

Lau Yun Yi — 2025-11-30

This study investigates how financial risk influences the stock returns of Malaysian banks listed on Bursa Malaysia from 2015 to 2024. Using a multivariate Generalized Least Squares regression model, the effects of credit risk, market risk, liquidity risk, and capital risk on quarterly bank stock performance were examined. The analysis leverages data from nine major listed banks, controlling for multicollinearity, heteroscedasticity, and autocorrelation. The findings reveal that among the four risk measures, only the capital-to-asset ratio has a statistically significant positive impact on stock returns, indicating that stronger capitalization enhances investor confidence. Credit, market, and liquidity risks do not show significant effects, suggesting market efficiency in incorporating public information. These results offer insights for investors, bank management, and regulators to improve risk mitigation strategies and bolster financial stability in Malaysia's banking sector.

SYSTEMATIC LITERATURE REVIEW: DETECTION OF FINANCIAL FRAUD BASED ON MACHINE LEARNING

Anita — 2025-11-30

Deteksi kecurangan keuangan menjadi fokus penting di tengah meningkatnya ancaman penipuan digital dan kompleksitas transaksi keuangan. Penelitian ini melakukan Tinjauan Literatur Sistematis (SLR) terhadap 47 artikel ilmiah terindeks Scopus Q1 dan Q2 yang diterbitkan antara tahun 2015 dan 2025, untuk mengidentifikasi metode pembelajaran mesin , jenis kecurangan yang paling sering diteliti, dan metrik evaluasi yang digunakan. Proses SLR diterapkan sesuai dengan protokol Kitchenham dan kerangka kerja PRISMA untuk menjaga validitas dan replikasi penelitian. Hasil tinjauan menunjukkan bahwa algoritma Support Vector Machine (SVM), Artificial Neural Network (ANN), dan Logistic Regression (LR) paling umum digunakan, terutama dalam kasus penipuan kartu kredit, penipuan laporan keuangan, dan penipuan asuransi . Evaluasi model umumnya menggunakan metrik akurasi, presisi, recall, F1-score , dan AUC . Penelitian ini memberikan kontribusi penting untuk memetakan tren, pendekatan dominan, dan kesenjangan penelitian mengenai deteksi penipuan keuangan berbasis pembelajaran mesin, sehingga dapat berguna sebagai referensi strategis untuk pengembangan sistem deteksi yang lebih adaptif dan efisien di masa mendatang.

The IMPACT OF SOLVENCY POSITION ON BANKS’ PERFORMANCE IN MALAYSIA

Nazaria Md Aris — 2025-11-30

Solvency position reflects a bank’s ability to meet its long-term financial obligations and serves as a key indicator of financial stability and performance. However, there is limited empirical evidence on how different solvency ratios influence bank performance in the Malaysian context. This study aims to examine the impact of solvency position on the performance of commercial banks in Malaysia. A quantitative descriptive research design was employed, covering a five-year period from 2018 to 2023. Secondary data were obtained from the annual reports of firms listed on Bursa Malaysia and analyzed using a panel data regression model via EViews version 12. The findings reveal that both the debt ratio and capital adequacy ratio have a statistically significant effect on return on equity, which serves as a proxy for bank performance. Conversely, the equity ratio does not exhibit a significant impact. Control variables such as bank size and interest rate also show no significant influence on performance. These results offer valuable insights for bank managers, investors, and policymakers, particularly in formulating effective capital management strategies and enhancing financial resilience within the Malaysian banking sector.

THE IMPACT OF FINANCIAL LITERACY ON FINANCIAL PLANNING BEHAVIOUR AMONG UNIMAS STUDENTS

Melissa Jane A/P Vilson — 2025-11-30

This research investigates the impact of financial literacy on the financial planning behavior of university students at Universiti Malaysia Sarawak (UNIMAS). This study highlights the importance of financial literacy in encouraging responsible money management by focusing on three main areas: financial awareness, knowledge, and skills. Employing a quantitative approach, primary data were collected through structured questionnaires administered electronically to 400 undergraduate and postgraduate students. Multiple linear regression was used in the data analysis process to ascertain the impact of literacy aspects on financial planning behavior, which includes debt management, saving, and budgeting, and descriptive statistics to profile respondents. The results show that students' financial planning practices are highly impacted by all three aspects of financial literacy, with financial knowledge having the biggest impact. The findings highlight how crucial focused financial education is in helping young adults develop sound financial habits. This study offers valuable insights for educators and policymakers seeking to enhance financial literacy programs within higher education institutions to foster better financial decision-making among students.

THE NEXUS BETWEEN BOARD COMPOSITION AND FIRM PERFORMANCE: EVIDENCE FROM THE F4GBM INDEX

Chee Ling Chin — 2025-12-01

This study examines the nexus between board composition and firm performance among companies listed under the FTSE4Good Bursa Malaysia (F4GBM) Index. A total of 116 F4GBM-listed companies were analyzed over a five-year period from 2019 to 2023 using panel data regression. Board composition was proxied by board size, board independence, and board gender diversity, while firm performance was measured by return on assets (ROA) and return on equity (ROE). The empirical results indicate that none of the board composition variables have a statistically significant impact on firm performance. However, the control variables show significant effects—debt ratio negatively influences performance, while firm size exhibits a positive relationship. The insignificant findings suggest that, among Malaysian ESG-compliant firms, the influence of board structure on financial performance may be limited due to standardized governance practices and regulatory requirements under Bursa Malaysia’s corporate governance framework.

The DIVIDEND POLICY ON FIRM PERFORMANCE: EVIDENCE FROM THE COMPANIES LISTED ON FTSE BURSA MALAYSIA TOP 100 INDEX

Nelly Phan Wan Ying — 2025-12-01

This research examines the impact of dividend policy on firm performance of the companies on the FTSE Bursa Malaysia Top 100 Index. It explores the relationship between key dividend policy indicators such as dividend payout ratio (DPR), dividend yield (DY), and dividend per share (DPS) and firm performance measures, including return on assets (ROA) and return on equity (ROE). The study employs a quantitative approach, analyzing secondary data from financial reports of the companies on FTSE Bursa Malaysia Top 100 Index from 2020 to 2024. Statistical methods, including multiple regression analysis, are used to identify trends and relationships. The findings highlight the dual role of dividend policy in influencing profitability. The study also identifies significant implications for financial managers, policymakers, and investors, offering insights into strategic decision-making for corporate growth and financial stability. With a sample of 72 companies on the FTSE Bursa Malaysia Top 100 Index that consistently pay dividends, these empirical results show that DPR is significantly negatively associated with firm performance. However, DY and DPS are significantly positively associated with firm performance. Overall, the study’s findings indicate that dividend policy significantly affects firm performance, suggesting that inconsistent or insufficient dividend payments can reduce firm value and weaken investor confidence, especially during volatile or post-crisis periods.

CORPORATE DETERMINANTS OF DIVIDEND POLICY: EMPIRICAL EVIDENCE FROM MALAYSIAN PUBLIC LISTED FIRMS

Chee Ling Chin — 2025-12-01

This study investigates the determinants of dividend policy among 30 firms listed on the FTSE Bursa Malaysia KLCI (FBMKLCI) from 2015 to 2023. Drawing on signaling theory and agency cost theory, the analysis examines the influence of liquidity, profitability and leverage on dividend payout ratios (DPR). Using pooled OLS regression with robust standard errors, the results reveal that control variable of growth opportunities have a significant and positive effect on dividend payout, suggesting that Malaysian firms use dividends as a credible signal of financial strength and future prospects. In contrast, liquidity, profitability, and leverage are statistically insignificant, indicating that these financial factors are not the primary drivers of dividend decisions among large-cap firms. The findings extend existing evidence from emerging markets and also provides practical insights for managers, investors, and policymakers in developing dividend strategies that enhance market confidence and shareholder value.

FINANCIAL LITERACY AND FINTECH ADOPTION AMONG UNIMAS STUDENTS

Muhammad Solehin Rosman — 2025-12-01

This study investigates the relationship between financial literacy and fintech adoption among students at Universiti Malaysia Sarawak (UNIMAS). This study uses a structured questionnaire for 152 respondents. Both descriptive and regression analysis are used in this study. The regression results show that demographic factors are not significant influencing fintech adoption among UNIMAS students. On the other hand, financial knowledge, perceived usefulness and digital literacy are significant. The implications of this research extend beyond academia, holding significant relevance for policymakers and financial service providers.

THE IMPACT OF MACROECONOMIC VARIABLES ON ISLAMIC STOCKS MARKET PERFORMANCE IN MALAYSIA

Kie Hoe Kong — 2025-12-02

This study examines the relationship between macroeconomic variables and the performance of Islamic stocks in Malaysia, focusing on the FTSE Bursa Malaysia Hijrah Shariah Index. By analyzing the effects of interest rates, inflation, gross domestic product (GDP), and foreign direct investment (FDI), the research addresses existing gaps in understanding how these factors influence Shariah-compliant equity markets. The study adopts a quantitative design using 15 years of quarterly data (2009–2023), yielding 60 observations. An Autoregressive Distributed Lag (ARDL) model is applied to assess both short- and long-run dynamics, complemented by diagnostic tests to ensure validity and reliability. The results show that GDP exerts a statistically significant negative influence on Islamic stock market performance in both the short and long run, whereas interest rates, inflation, and FDI exhibit no significant effects. These findings offer important implications for investors, policymakers, and other stakeholders, supporting more informed decision-making and contributing to efforts to strengthen the resilience of Malaysia’s Islamic capital market.

CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF MALAYSIAN PUBLIC LISTED MANUFACTURING FIRMS

Muhammad Afnan Aniq Bin Abdul Khalis — 2025-12-02

This study examines how corporate governance mechanisms influence the financial performance of Malaysian public listed manufacturing firms between 2019 and 2023. Drawing on agency theory and stewardship theory, the analysis focuses on board size, leverage, liquidity, and revenue growth as determinants of return on assets (ROA). Secondary data from 20 manufacturing firms listed on Bursa Malaysia were analysed using panel regression models, including Pooled OLS, Random Effects, and Fixed Effects estimators. The results indicate that leverage exerts a statistically significant negative effect on ROA, while liquidity and revenue growth are positively associated with firm performance. Board size shows no significant relationship with ROA, suggesting that the effectiveness of the board depends more on its quality and expertise than its numerical size. The findings extend prior Malaysian and emerging‑market evidence on governance–performance linkages and provide practical insights for policymakers, managers, and researchers interested in strengthening governance frameworks in the manufacturing sector.

THE IMPACT OF LIQUIDITY RISK AND MACROECONOMIC FACTORS ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN MALAYSIA

Masturani Stephen — 2025-12-02

This study aims to examine the impact of liquidity risk and macroeconomics factors on the financial performance of commercial banks in Malaysia. This study uses secondary data from 20 commercial banks in Malaysia from 2019 to 2023 and panel data estimation. The empirical results show that the loan-to-deposit ratio has a significant negative impact on return on assets. Interest rates and GDP also shows significant positive effects on bank performance, highlighting the role of macroeconomic conditions in influencing profitability. In contrast, capital adequacy ratio and current ratio had insignificant effects on profitability. This study provides practical insights for policymakers, investors, and bank managers in enhancing risk management and decision-making processes.

CRUNCHING PROFITS AND CODE: THE AI-ENHANCED PATH TO SME INVESTABILITY

Shaashita Ramarau — 2025-12-10

Small and Medium Enterprises (SMEs) are the backbone country's economic development. However, a gap exists in the market for these firms to obtain investments due to a lack of adequate framework to assess the risk profile of these firms adding to the investor sentiment towards these SMEs’. Despite that, traditional methods such as financial indicators have often been used to evaluate firm performance and aiding in investors investment decisions. However, the adoption of AI model such as logistic regression further enhances the risk assessment process

WORKING CAPITAL DYNAMICS AND FIRM PERFORMANCE: EVIDENCE FROM MALAYSIAN TECHNOLOGY FIRMS

Zhen Hui Ong — 2025-12-11

This study examines how working capital management influences the financial performance of technology firms listed in the FTSE Bursa Malaysia Top 100 Index, addressing gaps in sector-specific evidence in Malaysia. Based on recent empirical findings linking WCM practices to profitability, we investigate the effects of the Cash Conversion Cycle, Average Payment Period, Current Ratio, and Leverage in relation to Return on Assets and Return on Equity. Using panel data from 12 firms over 2019–2023, and panel data regression, the Fixed Effects Model (FEM) shows that only LEV significantly and positively affects both ROE and ROA, supporting the Trade-Off Theory. To address endogeneity, the Generalized Method of Moments (GMM) confirms LEV’s significance and further indicates that CCC and CR also influence ROE when dynamic factors are considered. The findings suggest that financial leverage is the primary driver of performance, while efficient WCM enhances shareholder returns under advanced modelling. These findings highlight the critical role of leverage management as part of working capital strategy for Malaysian technology firms.

DIGITAL FINANCE TOOLS AND FINANCIAL INCLUSION IN MALAYSIA: AN ANALYSIS BASED ON SURVEY DATA

Suzila Mohamed Yusof — 2025-12-12

Digital finance has become a transformative force in the financial services sector, driving innovation and promoting global financial inclusion. Financial inclusion refers to providing affordable and appropriate financial services, which are essential for economic growth, poverty reduction, and social equality. In Malaysia, limited empirical evidence exists on how digital finance tools influence financial inclusion. This study aims to examine the relationship between digital financial tools, specifically mobile banking, internet banking, and e-wallets, with financial inclusion across diverse demographic groups in Malaysia. A quantitative, cross-sectional design was employed, with data collected from 211 randomly selected respondents representing various age groups, income levels, education backgrounds, and both urban and rural areas. Data were gathered through an online questionnaire distributed via Google Forms and analyzed using SPSS. Findings indicate that digital finance tools significantly contribute to financial inclusion in Malaysia. These insights are valuable for policymakers, financial institutions, and technology providers seeking to enhance inclusion through digital solutions. The study also highlights challenges and opportunities in promoting adoption across different societal segments. Future research should explore emerging financial technologies and strategies to bridge digital divides within diverse cultural and socioeconomic contexts.