COVID-19 pandemic – Jurnal Pengurusan

Loan Moratorium Announcements and Stock Market Reaction: An Event Study Analysis

asriwn — Tue, 31 Jan 2023 03:36:56 +0000

Loan moratoriums have been a crucial lifeline defence for many borrowers during the unprecedented COVID-19 pandemic. Despite the massive amount of funds allocated to support affected borrowers, the impact on banks remains unexplored. This study aims to examine the impact of the loan moratorium announcements on Malaysian banks’ stocks. Utilising an event study methodology, this study shows that bank investors reacted differently to different types of loan moratoriums. Bank investors positively valued moratoriums that did not waive accrued interest and covered a broader group of borrowers. This study suggests that while moratoriums must be given to borrowers during difficult times, the financial interests of banks should also be considered. Hence, loan moratoriums should feature accrued interest payments to ensure the banks’ prospects remain stable from the investors’ perspective.

Islamic Finance and COVID-19 Recovery: The Role Profit-Loss Sharing Contract

syazwinaramjan — Sat, 08 Oct 2022 12:27:43 +0000

This note uncovers the beauty of Islamic finance via its Profit-Loss Sharing Contract (PLSC) as a financing tool in helping the economy and businesses to recover from COVID-19 economic crisis. PLSC is a contract that shares business risks between participants, while Interest-Based Contract (IBC) requires entrepreneurs to bear the entire business risks. Besides its fairness and justice in wealth creation and income distribution, past literature have shown that PLSC has been successfully adopted in various countries across industries. Redesign of mind-set and role from self-interest to common interest and from intermediaries to entrepreneurs are needed for the financial sector to embrace the benefits of PLSC towards achieving economic and societal sustainability.

Circular Economy Needs the Resilient Systems in COVID-19 Pandemic

syazwinaramjan — Sat, 08 Oct 2022 07:37:10 +0000

This note reveals the gaps from circular economy (CE) and resilience in the literature during COVID-19 pandemic. The disruptive event affects the circularity in the supply chain due to numerous single-use-products in food, health, plastic industries. The unsustainable production and consumption is harmful for social, ecological, and economic systems. The industrial practices need a highly resilient network to have better visibility and agility to shift sourcing. Prior studies reveal the gap that CE needs the resilient systems. Still, there is a need to conceptualize and models resilience in CE studies using quantitative and qualitative approaches.