Was bail-out a success? Evidence from the investment-cash flow relationship

The 1997-1998 Asian financial crisis affected the balance sheets of many Malaysian firms, which increased the financial constraints on such firms. To counter the impacts, the Malaysian government carried out various directed policy measures known collectively as the bail-out policy. The present pa...

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Main Authors:	Mohd Adib Ismail, Mansor H. Ibrahim, Mohd Pisal Zainal, Mohammed Yusoff
Format:	Article
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/8087/ http://journalarticle.ukm.my/8087/

id	ukm-8087
recordtype	eprints
spelling	ukm-80872014-12-05T19:25:23Z http://journalarticle.ukm.my/8087/ Was bail-out a success? Evidence from the investment-cash flow relationship Mohd Adib Ismail, Mansor H. Ibrahim, Mohd Pisal Zainal, Mohammed Yusoff, The 1997-1998 Asian financial crisis affected the balance sheets of many Malaysian firms, which increased the financial constraints on such firms. To counter the impacts, the Malaysian government carried out various directed policy measures known collectively as the bail-out policy. The present paper examines the success of the policy to reduce the financial constraints. The present paper uses panel estimation methods to analyze the relationship between firms’ investments and their cash flows. The sample of study is split into two subsamples, consisting of the periods before and after the financial crisis, respectively. The success of the policy is measured based upon the easing of financial constraints faced by Malaysian firms. Using annual financial data, consisting of unbalanced panel from the period of 1988 to 2005, the results found favour the bail-out policy. This finding indicates the success of the bail-out policy to reduce the severity of financial constraints. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed Mohd Adib Ismail, and Mansor H. Ibrahim, and Mohd Pisal Zainal, and Mohammed Yusoff, (2013) Was bail-out a success? Evidence from the investment-cash flow relationship. Jurnal Ekonomi Malaysia, 47 (1). pp. 31-40. ISSN 0127-1962 http://ejournal.ukm.my/jem/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
description	The 1997-1998 Asian financial crisis affected the balance sheets of many Malaysian firms, which increased the financial constraints on such firms. To counter the impacts, the Malaysian government carried out various directed policy measures known collectively as the bail-out policy. The present paper examines the success of the policy to reduce the financial constraints. The present paper uses panel estimation methods to analyze the relationship between firms’ investments and their cash flows. The sample of study is split into two subsamples, consisting of the periods before and after the financial crisis, respectively. The success of the policy is measured based upon the easing of financial constraints faced by Malaysian firms. Using annual financial data, consisting of unbalanced panel from the period of 1988 to 2005, the results found favour the bail-out policy. This finding indicates the success of the bail-out policy to reduce the severity of financial constraints.
format	Article
author	Mohd Adib Ismail, Mansor H. Ibrahim, Mohd Pisal Zainal, Mohammed Yusoff,
spellingShingle	Mohd Adib Ismail, Mansor H. Ibrahim, Mohd Pisal Zainal, Mohammed Yusoff, Was bail-out a success? Evidence from the investment-cash flow relationship
author_facet	Mohd Adib Ismail, Mansor H. Ibrahim, Mohd Pisal Zainal, Mohammed Yusoff,
author_sort	Mohd Adib Ismail,
title	Was bail-out a success? Evidence from the investment-cash flow relationship
title_short	Was bail-out a success? Evidence from the investment-cash flow relationship
title_full	Was bail-out a success? Evidence from the investment-cash flow relationship
title_fullStr	Was bail-out a success? Evidence from the investment-cash flow relationship
title_full_unstemmed	Was bail-out a success? Evidence from the investment-cash flow relationship
title_sort	was bail-out a success? evidence from the investment-cash flow relationship
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/8087/ http://journalarticle.ukm.my/8087/
first_indexed	2023-09-18T19:51:29Z
last_indexed	2023-09-18T19:51:29Z
_version_	1777406249095135232

Was bail-out a success? Evidence from the investment-cash flow relationship

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