No abstract

In this paper, a cross-sectional samples data of 115 Malaysian stocks have been employed to compare both Data Envelopment Analysis (DEA) method and Stochastic Frontier Analysis (SFA) method. These approaches are used to provide a review of frontier conceptual measurement, strength and limitation of the parametric and non-parametric models. Stochastic frontier production function of Cobb-Douglas type was utilized for the estimation. The function was estimated using the maximum likelihood estimation technique. Two models in DEA, DEA-CCR and DEA-BCC are applied in this study and the ranking correlation between SFA method and both models DEA are determined by using the Spearman rank method. The result revealed using SFA, the mean technical efficiency of sample consumer product companies is 37.5% and implies that companies operating at means level of technical efficiency could produce 80.1% more output for given level of inputs if they become technically more efficient. From empirical results of the SFA method, we determined that the deviations from the efficient frontiers of production functions are largely attributed to inefficiency effects (technical inefficiency). Finally, the findings also showed that the difference in ranking stocks performance using DEA-CCR, DEA-BCC and SFA methods. The main contribution of the paper is showing the comparative performance based on both model, DEA and SFA method using financial ratio.

This paper investigates the pattern of capital structure of 4,127 Malaysian companies from 2005 to 2015. We, then specify the sample into two periods, the pre-recession period from 2002 until 2007 and post-recession period from 2009 until 2015, to determine whether there is any significant different in term liabilities between the two periods. For the third objective of this paper, we examine the impact of base lending rate (BLR) in the capital structure between pre-and post-recession periods, indicating the companies drastically change their capital structure after recession occurs. In this paper, we find a sharp downwards movement in long-term debt and total debt after 2008 year of recession. We also document the level of total debt and long-term debt to significantly higher before the recession hit. Interestingly, we find base lending rate to have negative relationship with long-term and total debts only after recession has occurred but not during the economic expansion (pre-recession period), thus supporting the study's hypotheses.

Tax avoidance may result in a substantial loss of government revenue and detract from the planning of national growth. Companies employ a variety of tax avoidance schemes to evade tax, and companies from different industries may have varying tax incentives and degrees of tax avoidance practices. Therefore, this study investigates tax avoidance activities among companies in different sectors in Malaysia. It also seeks to examine the impact of the code of corporate governance on tax avoidance activities. This study uses four proxies to measure tax avoidance; Accounting ETR (AETR), Cash ETR (CETR), Tax Expenses to Operating Cash Flow (TECF), and Cash Paid to Operating Cash Flow (CPCF). Using a sample of listed companies in Bursa Malaysia from 2005-2015, this study discovers that tax avoidance activities are significantly affected by the industrial sectors. The result finds that manufacturing companies, Infrastructure Project Companies (IPC) and hotels pay significantly lower effective tax compared to the other companies in different sectors. Additionally, the study also finds evidence that the code of corporate governance in 2012 has significantly been successful in mitigating the tax avoidance activities among listed companies in Malaysia. It contributes to the literature by providing empirical evidence on the influences of Malaysian Industrial Master Plan 3 on companies' tax avoidance activities.

Analysing performance using the financial ratio is challenging for many investors and researchers. The purpose of this study is to evaluate efficiency performance of decisionmaking units (DMUs) which is stocks company of using production frontier-based and accounting-based approaches. Thus, the data envelopment analysis (DEA) models and DuPont analysis were applied. Specifically, DuPont analysis was utilized to evaluate three different aspects: profitability, the efficiency of assets utilization and financial leverage. The return on equity (ROE) was calculated to rank the companies' performance. Meanwhile, the estimation method of DEA computed the efficiency scores and ranked the companies accordingly based on the ROE, return on assets, earnings per share, net profit margin, price to earnings ratio, debt to equity ratio and asset turnover. The major results showed that DMUs (company) gave different picture performance rankings with different approaches. The finding also revealed that the results from DEA method, gave more comprehensive analysis in term of efficiency measurement, whereas DuPont presented good analysis because it provided information for investors if the highest return is the main objective for them. Additionally, the analysis also provided an indication whether a company can earn a higher return if it generates a high net profit margin; if it uses its assets effectively to generate more sales and if it has a high financial leverage.