IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v15y2023i3p229-243.html
   My bibliography  Save this article

Factors Affecting Personal Bankruptcy among Malaysians

Author

Listed:
  • Norliza Che-Yahya
  • Nor Akila Mohd Kassim
  • Siti Sarah Alyasa-Gan
  • Beche Nediam Nori

Abstract

Malaysia faces higher bankruptcy cases involving personal bankruptcies among Malaysians despite increasing the threshold of a personal bankruptcy declaration. This research aims to study the factors influencing Malaysian personal bankruptcy, utilizing the macroeconomic aggregates as the determinants, which are inflation rate (IR), unemployment rate (UE), lending interest rate (LR), Gross Domestic Product (GDP) per capita and household final consumption expenditure (HFCE). This study uses a quantitative approach and time series analysis which includes a group of data from 1985 to 2021, i.e., 37 years of observations. The sample series of time frames is sufficient to assess the long-term relationship between the macroeconomic perspectives and personal bankruptcy. The data was analyzed using multiple linear regression analysis. The finding shows a significant negative relationship between Malaysian personal bankruptcy and unemployment rate, lending interest rate and household final consumption expenditure. In contrast, there is an insignificant relationship between Malaysian personal bankruptcy and the inflation rate

Suggested Citation

  • Norliza Che-Yahya & Nor Akila Mohd Kassim & Siti Sarah Alyasa-Gan & Beche Nediam Nori, 2023. "Factors Affecting Personal Bankruptcy among Malaysians," Information Management and Business Review, AMH International, vol. 15(3), pages 229-243.
    • Handle: RePEc:rnd:arimbr:v:15:y:2023:i:3:p:229-243
    DOI: 10.22610/imbr.v15i3(SI).3479
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3479/2227
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3479
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v15i3(SI).3479?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Houcem Smaoui & Karim Mimouni & Akram Temimi, 2020. "The impact of Sukuk on the insolvency risk of conventional and Islamic banks," Applied Economics, Taylor & Francis Journals, vol. 52(8), pages 806-824, February.
    2. Heryati, Sharifah & Ismail, Shafinar & Wah, Bee, 2019. "Personal bankruptcy prediction using decision tree model," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 24(47), pages 157-170.
    3. repec:eme:jefasp:jefas-08-2018-0076 is not listed on IDEAS
    4. Joel A. Elvery & Mark E. Schweitzer, 2020. "Partially Disaggregated Household‐Level Debt Service Ratios: Construction, Validation, And Relationship To Bankruptcy Rates," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 166-187, January.
    5. Jamel Boukhatem & Fatma Ben Moussa, 2018. "The effect of Islamic banks on GDP growth: Some evidence from selected MENA countries," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(3), pages 231-247, September.
    6. Yunchao, Cai & Abdullah Yusof, Selamah & Mohd Amin, Ruzita & Mohd Arshad, Mohd Nahar, 2020. "Household Debt and Household Spending Behavior: Evidence from Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 111-120.
    7. Gallagher, Emily A. & Gopalan, Radhakrishnan & Grinstein-Weiss, Michal & Sabat, Jorge, 2020. "Medicaid and household savings behavior: New evidence from tax refunds," Journal of Financial Economics, Elsevier, vol. 136(2), pages 523-546.
    8. repec:idn:jimfjn:v:3:y:2018:i:specialissuec:p:1-20 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qaisar Ali & Sulistya Rusgianto & Shazia Parveen & Hakimah Yaacob & Razali Mat Zin, 2024. "An empirical study of the effects of green Sukuk spur on economic growth, social development, and financial performance in Indonesia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21097-21123, August.
    2. Smaoui, Houcem & Mimouni, Karim & Miniaoui, Héla & Temimi, Akram, 2020. "Funding liquidity risk and banks' risk-taking: Evidence from Islamic and conventional banks," Pacific-Basin Finance Journal, Elsevier, vol. 64(C).
    3. Md. Shabbir Alam & Mustafa Raza Rabbani & Mohammad Rumzi Tausif & Joji Abey, 2021. "Banks’ Performance and Economic Growth in India: A Panel Cointegration Analysis," Economies, MDPI, vol. 9(1), pages 1-13, March.
    4. Puteri Nur Balqis Megat Mazlan & Nafez Fayez Hersh & Tajul Ariffin Masron & Nurhafiza Abdul Kader Malim, 2023. "Islamic finance and governance indicators: empirical evidence from Islamic finance-permitting countries," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 344-358, December.
    5. Biplob Hossain & Alomgir Hossain & Gazi Md. Shakhawat Hossain & Tanjana Saiyed Likhon, 2024. "Islamic Perspective of Household Debt Management: An In-Depth Study," International Journal of Science and Business, IJSAB International, vol. 31(1), pages 103-114.
    6. Reza Jamilah Fikri, 2018. "Monetary Transmission Mechanism Under Dual Financial System In Indonesia: Credit-Financing Channel," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 4(2), pages 251-278, November.
    7. Mensi, Walid & Hammoudeh, Shawkat & Tiwari, Aviral Kumar & Al-Yahyaee, Khamis Hamed, 2020. "Impact of Islamic banking development and major macroeconomic variables on economic growth for Islamic countries: Evidence from panel smooth transition models," Economic Systems, Elsevier, vol. 44(1).
    8. M. Kabir Hassan & Md Nurul Islam Sohel & Tonmoy Choudhury & Mamunur Rashid, 2024. "A systematic literature review of risks in Islamic banking system: research agenda and future research directions," Risk Management, Palgrave Macmillan, vol. 26(1), pages 1-29, February.
    9. Cortnie Shupe, 2023. "Public Health Insurance and Medical Spending: The Incidence of the ACA Medicaid Expansion," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 137-165, January.
    10. repec:idn:jimfjn:v:4:y:2018:i:2d:p:1-28 is not listed on IDEAS
    11. Angeliki Papana & Anastasia Spyridou, 2020. "Bankruptcy Prediction: The Case of the Greek Market," Forecasting, MDPI, vol. 2(4), pages 1-21, December.
    12. Muhamad Abduh & Witrie Annisa Buys & Sumayyah Abdul Aziz, 2022. "Exploring the Relationship between Islamic Financial Development, Energy Consumption, and Environmental Quality," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 426-430, March.
    13. Tuan, Truong Anh & Nam, Pham Khanh & Loan, Le Thanh, 2022. "The impact of health insurance on households’ financial choices: Evidence from Vietnam," Research in Economics, Elsevier, vol. 76(3), pages 264-276.
    14. Edi Suandi & Herri & Yulihasri & Syafrizal, 2023. "Evaluating the relationship between entrepreneurial marketing, competitive advantage, and Islamic banks performance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 599-614, September.
    15. Assad Ullah & Xinshun Zhao & Muhammad Abdul Kamal & Adeel Riaz & Bowen Zheng, 2021. "Exploring asymmetric relationship between Islamic banking development and economic growth in Pakistan: Fresh evidence from a non‐linear ARDL approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 6168-6187, October.
    16. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    17. Yang, Cai & Zhang, Hongwei & Weng, Futian, 2024. "Effects of COVID-19 vaccination programs on EU carbon price forecasts: Evidence from explainable machine learning," International Review of Financial Analysis, Elsevier, vol. 91(C).
    18. Gao, Pengjie & Lee, Chang & Murphy, Dermot, 2022. "Good for your fiscal health? The effect of the affordable care act on healthcare borrowing costs," Journal of Financial Economics, Elsevier, vol. 145(2), pages 464-488.
    19. Dr. Olalekan Akinrinola & Aruwa Isah Yusuf, 2020. "Growth and Financial Performance of Islamic Banks in Nigeria: The Monetary Policy Impact," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(12), pages 01-09, December.
    20. Juhro, Solikin M. & Syarifuddin, Ferry & Sakti, Ali, 2022. "Inclusive Welfare: On The Role of Islamic Public-Social Finance and Monetary Economics," MPRA Paper 113788, University Library of Munich, Germany.
    21. Ali Almeshari & Mohamed Hisham Bin Dato Haji Yahya & Fakarudin Bin Kamarudin & Sha’ari Abd Hamid, 2023. "Liquidity Creation and Economic Growth: Are They Monotonically Related? Evidence from MENA Countries," Economies, MDPI, vol. 11(1), pages 1-19, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:15:y:2023:i:3:p:229-243. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.