The current assets are increased by RM 369,558,000 and the current liabilities are increased by RM 182,476,000 from year 2009 to year 2010. Thus, Digi Bhd has more cash liquidity for year 2012 than year 2011. Current ratio is to test a company's liquidity. Current ratio is ascertained whether a company's short-term assets are readily available to pay off the short-term liabilities. Therefore, in theory, the higher the current ratio is better for the company. Total Asset Turnover (TAT) Total a...
The entities which are operating in more than one country are called Multinational Corporations. The typical Multinational Corporation functions with a headquarter in one country while other facilities are based in other countries. Multinational Corporation is also referred to transnational corporation. The model of the Multinational Corporation may vary but its simplest form is one that is headquarter in one country and its working units in other countries. Its main reason is that companies ...
After independence of Malaysia in 1957 from the British, Malaysia have changing the monetary system and established a new monetary policy. Since the established of the Central Bank in 1959, the objective of monetary policy in Malaysia has been adjusted. The financial infrastructure and control inflationary are the target of the management. Before that, the role of monetary policy just a complementarily to fiscal policy but today its roles are more demanding especially after monetary reforms w...
Due to the increasing volatility of interest rates in present society, bank managers become more concerned about the exposure to interest rate risk (Mishkin and Eakins 2009). Recent market volatility provides motivation for bank managers to consider interest rate risk management strategy carefully (Richie, Mautz and Sackley 2010). It will cause the fail for a business if interest rate risk did not be managed properly (Hemert 2010). Therefore, it is crucial to minimize the risk which is create...
Most businesses discover quite early on that the equipment, machinery, space, etc that they started up with is not adequate for their future needs. That does not necessarily make the owners bad businesspeople; it just shows how difficult it is to predict the future shape of any business. Perhaps they prudently chose second-hand items, or they were extremely conservative in their sales forecasts, and now simply cannot meet the demand. In any event decisions have to be taken on new investments....
A lot of research has already been conducted in the field of identifying the best determinants of Corporate Borrowing by various researchers. Most of the research work suggested that the corporate borrowing vary from company to company and similarly from decision factor to factor. Barclay and Smith (1995) showed that credit quality and size moderately effect on firm's to augment its debts term to maturity, and firm's debt falls with growth opportunities. In a related article, Stohs and Mauer ...
Recent Global Financial Crisis had a devastating affect on the entire Global Business. This Global Crisis crashes the key businesses, turn down the consumer wealth in the billions of Dollars, and a significant decline in economic movement. Experts have been pointed on so many reasons and they have been proposed so many causes. There are so many factors that directly and indirectly caused the ongoing financial crisis of 2007-2009. This started with the US subprime mortgage crisis. The housing ...
Investors try to maximise the return of their investment while minimising the risk. The only way of diversify the risk is holding their investments in different financial assets (securities) and in different countries. Different securities in the portfolio perform differently at any point of time if there is negative correlation between investment assets, thus the entire investments would not suffer the effect of any declining investment as it will be compensated by higher perform securities....
Introduction In an attempt to reduce corporate scandals that affect investors, organisations, countries and the world as a whole, several governance codes, practises and schemes were developed. Recent corporate scandals in international circles have increased the awareness of corporate governance codes in global investment. The executives of firms who are supposed to manage these companies engage in corrupt practises that adversely affects their organisations. The senior management of compani...
These systems make use of information and communications technology in financial operations to support management and budget decisions and the preparation of financial reports and statements. These systems computerize the financial management (PFM) processes, from budget preparation and execution to accounting and reporting, with the help of an integrated system. A finance and Accounting Information system stores, organizes and makes access to financial information easy. It stores financial i...
