Factors influencing spread in Malaysia securitization market

Bakri, Mohammed Hariri and Ismail, Shafinar and Zainal, Nurazilah and Kamarudin, Fakarudin and Al-Shami, Samer Ali Hussein (2020) Factors influencing spread in Malaysia securitization market. Accounting, 6 (4). pp. 433-440. ISSN 2369-7393

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The purpose of this paper is to propose a model to test the factors influencing on spread in Malaysia securitization market. An extension Vink’s model is tested and revalidated to determine and measure the factors influencing spread of securitized firms in Malaysia. The study consists firm characteristics and macroeconomic factors. Firm characteristic factors based on Vink’s model, such as Liquidity and Leverage. In addition, economic and market condition factors such as Interest and Inflation also maintain high impact to spread securitized firms. Ordinary Least square method, Panel data and multiple regression analysis are applied for the study period 2004-2012. The result shows two determinants influence or contribute to the primary market spread and are statistically significant in developing the securitization in Malaysia. It can be concluded that inflation and interest rate significantly contribute to the determinant of primary market spread. From four hypotheses, two hypotheses support that the determinants had a relationship with primary market spread. The result may become a model and benchmark for other ASEAN countries to be used as Malaysia resilient during subprime mortgage in 2008.

Item Type: Article
Uncontrolled Keywords: Leverage, Malaysia, Panel data, Securitization, Spread
Divisions: Faculty of Technology Management and Technopreneurship
Depositing User: Sabariah Ismail
Date Deposited: 03 Dec 2020 12:30
Last Modified: 16 Aug 2023 15:08
URI: http://eprints.utem.edu.my/id/eprint/24424
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