Determinants of non-bank financial institutions' profitability: empirical evidence from Malaysia

Fadzlan Sufian

Global Business and Economics Review, 2009, vol. 11, issue 2, 141-166

Abstract: The present paper examines the determinants of non-bank financial institutions' (NBFIs) profitability in a developing economy. Specifically working within the Malaysian financial sector, the analysis is confined to the universe of the merchant banks and finance companies operating in the Malaysian financial sector during the period 2000-2004. The results suggest that Malaysian NBFIs with a higher risk exhibits lower profitability level. On the other hand, the large Malaysian NBFIs with high operational expenses exhibits higher profitability level, thus supporting the expense preference behaviour hypothesis. The results suggest that specialisation has no significant relationship with Malaysian NBFIs profitability.

Keywords: non-bank financial institutions; profitability; multivariate regression analysis; Malaysia; developing countries; expense preference behaviour. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=28981 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:11:y:2009:i:2:p:141-166

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().